Compensation Levels and Quit Rates in the Public Sector

Many people feel that, despite the government's stated objective of pay comparability, government workers are paid more than their private-sector counterparts. The quit rate as a comparability measure is the subject of this paper. Since quit rates are a function of pay levels, comparable quit rates-adjusted for nonpay determinants-should mean comparable pay. The evidence presented here indicates that government quit rates are lower than private-sector quit rates although much of the difference can be accounted for by the large size of the government. It is also pointed out that comparability-of either pay or total compensation-is not an efficient principle.