Want to earn more, retire earlier and enjoy better job security? Join the public sector! At least that's the gist of a new report from the Fraser Institute that says the benefits of a cushy government job often outweigh the perks of the private sector.

The report, released this week, says public sector employees earn a wage that is 12 per cent higher, on average, than their private sector equivalents.

Additional key findings from the report:

  • 88.2 per cent of public sector workers have a registered pension plan (RRP), compared to just 24 per cent of private sector employees.
  • Of public sector workers covered by an RPP, 94 per cent had a defined benefit pension, compared to just 52.4 per cent of private sector workers.
  • Public sector workers retire, on average, two-and-a-half years earlier than their private sector equivalents.
  • 3.8 per cent of private sector employees will lose their jobs during the course of their career, compared to just 0.6 per cent in the public sector.

The report states: "The Canadian research examining wage differences between the two sectors over the past three decades consistently indicates a premium for public sector workers. The specific wage premiums vary depending on the data source and timing. What is clear, however, is that a premium exists."

The researchers acknowledged that a lack of non-wage data in Canada makes it difficult to make a complete comparison between the public and private sector's offerings, but "the data that are available indicate that the public sector enjoys a clear wage premium."

"There are also strong indications that the public sector has more generous non-wage benefits than the private sector," the report said.

The authors recognize there are different factors at play in the two sectors that influence things like wages and job security. While decisions about layoffs and new hires in the private sector are driven almost purely by profits and market demand, "the public sector wage process is largely determined by political factors."

"These differences are amplified by the monopoly environment in which the public sector operates versus the competitive environment of the private sector," the report said.

It goes on to suggest a number of steps the public sector can take to transition towards a compensation system that is more comparable to the private sector, including better data collection from Statistics Canada, broader analysis of "total compensation" (as opposed to a wage-only approach), greater transparency about public sector wages and benefits.

Finally, the report suggests the establishment of a formal system for setting compensation within the public sector, possibly incorporating arms-length wage boards or lump sum payments to unions, allowing them to determine "the composition of compensation for their members."