A Multivariate Statistical Approach to Compare Fringe Benefits Between Public and Private Sector Workers

Abstract

This study relies on multivariate statistical analysis applied to the Health and Retirement Study (1992-2002) to approach the issue of public/private compensation differences. Particularly, principal components are used to uncover the internal structure of relationships among demographic variables, while multiple correspondence  analysis is used to describe and compare wages and fringe benefits between the two sectors. Results indicate the public sector compensates more its workers, not only by offering higher wages but also better non-wage monetary benefits.