Similarly, public sector jobs may pay a low salary, but offer health coverage, annual leave, old-age pension, and other benefits. Choosing elite private sector companies as comparators has led to serious fiscal problems in some countries. These comparisons have convinced government officials, trade unions, and public opinion that public sector workers are dramatically under-paid. Through policy choices, strikes, or arbitration awards, their salaries often have been increased dramatically across the board, making the wage bill unsustainable. In many instances, however, employees have retained their public sector jobs while resorting to other income-generating activities.
Outright corruption is perhaps the most pernicious effect.
Absenteeism and day-lighting also undermine public sector efficiency. Over-compensation can create excessive pressure for public sector employment and strain government finances. Conversely, low public sector pay relative to the private sector can be associated with skill shortages, and with corruption. The empirical evidence as to whether low civil service wages foster corruption is mixed. Findings from cross-country data vary depending on the wage data and corruption data used, the countries that are included in the analysis, and the research design.