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Canadian public-sector workers are paid 12% more than their private-sector counterparts, says a study released Thursday by the Fraser Institute.

Although the conservative think-tank said Statistics Canada did not record data in enough detail to make a more rigorous comparison, public workers probably also had better pensions and other non-wage benefits, such as shorter work weeks and earlier retirement.

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“To be frank, this is in line with previous reports that have been done since the ’70s, and in line with what we’ve seen internationally,” said Jason Clemens, the institute’s executive vice-president.

At a time of austerity, when federal and provincial governments face growing debts and large deficits, Mr. Clemens said he was surprised none seemed to be moving toward a system that would bring public-sector benefits in line with those in the private sector.

Citing earlier studies, the report suggested the differential is more likely the result of differing spending constraints.

While private-sector wages are limited by the need to turn a profit, the public sector has less incentive to be cost-effective. The only thing keeping public wages in check is politics.

Further, most public services are delivered by monopolies, which give workers greater leverage over the public purse.