Table 6

Pay gaps for public-sector workers are larger in states with weak or no collective bargaining rights: Differences between government and private-sector earnings by strength of public-sector bargaining rights

  Pre-pandemic  Pandemic and post-pandemic 
  Banned  Permitted  Required  Banned  Permitted  Required 
All  -21.3%  -18.1%  -9.5%  -22.9%  -20.1%  -14.9% 

All (with additional demographic controls) 

-19.0%  -16.6%  -8.7%  -20.5%  -18.6%  -13.8% 
By education:             

No bachelor’s degree

-10.0%  -8.5%  8.0%  -11.9%  -8.2%  3.5% 

Bachelor’s  degree

-27.9%  -23.1%  -19.9%  -29.0%  -25.9%  -24.3% 
By race and ethnicity:             

White, non-Hispanic 

-24.2%  -20.5%  -13.8%  -25.5%  -23.0%  -19.1% 

Black, non-Hispanic 

-9.9%  -3.4%  8.6%  -12.5%  -2.9%  1.6% 

Hispanic 

-10.5%  -7.3%  8.1%  -12.8%  -10.7%  3.9% 

AAPI/other, non-Hispanic 

-24.4%  -19.4%  -13.0%  -29.5%  -21.8%  -19.5% 
By gender:             

Men 

-20.5%  -16.0%  -6.0%  -23.2%  -17.8%  -10.7% 

Women 

-16.1%  -14.7%  -8.2%  -17.5%  -17.1%  -13.9% 
Economic Policy Institute

Notes: Hispanic refers to Hispanic workers of any race, while white, Black, and AAPI/other refer to non-Hispanic whites, non-Hispanic Blacks, and non-Hispanic Asian Americans, Pacific Islanders, and other racial categories, respectively. “Banned” states are those in which government workers are effectively barred from engaging in collective bargaining over pay. “Permitted” states are those in which government entities may engage in collective bargaining over pay with government workers, but there is no statewide mandate. “Required” states are those in which government entities are required to engage in collective bargaining over pay with government workers. Collective bargaining rights are determined separately for teachers, police, firefighters, other local government workers, and other state government workers. The pay gap is the difference in weekly earnings of full-time government workers, working 35+ hours weekly, ages 18–64, compared with those of their private-sector counterparts, controlling for education, age, hours worked, state, and year using regression analysis. Regressions with additional demographic controls also adjust for race, ethnicity, gender, immigrant and marital status. The pre-pandemic period is March 2016–February 2020. The pandemic and post-pandemic period is March 2020–February 2024. 

Source: Authors’ analysis of U.S. Census Bureau Current Population Survey microdata, pooled Outgoing Rotation Group sample (Flood et al. 2020 merged with EPI 2024). Collective bargaining rights based on authors’ analysis of Valletta and Freeman (1988); Rueben (1996); Dippel and Sauers (2019) Sanes and Schmitt (2014); Frandsen and Webb (2017); NCTQ (2019); Han (2019); Brannick (2019); NEA (2020); AFSCME (n.d.) cited in McNicholas et al. (2020); Commonwealth Foundation (2021); García and Han (2021); Brannick and Holman (2022); New Mexico Public Employee Labor Relations Board (2023); NCSL (n.d.(a)); IAFF (n.d.).  

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