Exercises of this sort reveal that some public sector workers could earn more out of the public sector than they earn in it. The fact that these workers do not voluntarily resign means that they value the other benefits from their jobs at least as much as the earnings they forego by sticking to them. This information can be used to infer the value of non-tangible benefits associated with public sector jobs. The in versus out approach requires access to individual records from Labor Force Surveys or from Living Standards Measurement Surveys. The in versus out approach provides a current year value for the total rewards package.
Monetary compensation is a subset of total rewards.
Assaad, Ragui. 1999. Matching Severance Payments with Worker Losses in the Egyptian Public Sector . Chong, Alberto, and Mart n Rama. Simulations for Government Employees in Guinea-Bissau. In Proceeding of the Economists Forum .