2

'I never said public sector workers are overpaid' – Government Statistician clarifies

Prof. Samuel Kobina Annim GSS11212.jpeg Prof. Samuel Kobina Anim is Government statistician

Tue, 7 Jun 2022 Source: www.ghanaweb.com

Public sector workers paid double their output, Govt statistician

We should measure productivity, Prof. Annim

Stark inequality in earnings of public sector workers, Prof. Annim


Government statistician, Professor Samuel Kobina Annim has stated that he did not say public sector workers are overpaid.

The conversation on the overpayment of public sector workers has been in the news for some time now, after Prof. Annim during his inaugural lecture stated that public sector workers were paid almost double their output.

Prof. Annim noted that while earnings averaged about GH¢3,420 for the public sector worker, output in the sector averaged about GH¢1,420, less than half the earnings.

But the Professor, speaking to JoyNews said, the statement is attributed to him had been misconstrued.

“The bottom line is that I never said public sector workers are overpaid. No, I didn’t say that public sector workers are being overpaid. I introduced the conversation on productivity. I did it in the context of four other variables.”

According to him, his comments were to generate a conversation on the productivity of the public sector juxtaposed to the Gross Domestic Product of the country.

“So essentially, what I sought to do was to start the conversation that states that the formal sector which is mainly the public sector contributes three-quarters to our GDP. Our huge informal sector contributes only 25% to our GDP. The next thing that I sought to do was to demonstrate the inequalities in earnings that we have”, he explained.

“Unfortunately as a country, we’ve been reporting consumption-expenditure inequality. So, what my lectures sought to do was to first paint a picture that clearly demonstrates the contribution of the formal sector to our GDP, which as I said is mainly public sector driven.

And then say that if you look at inequalities from an earnings point of view based on data from the public sector, we have a stark inequality”.

He emphasized, “Once the Gini coefficient is closer to one, it characterizes a nearby perfect unequal space. Then using the data on earnings, I showed that the Gini coefficient was 2.71 if you take away the ally.

Then the third variable that I talked about had to do with productivity. And I said if we always have been releasing GDP and we don’t measure productivity, how can we track the progress that we want to make on GDP? Then I said look at our population that is employed from the census. Look at our GDP and then this is the output per person. And this is the earnings per person in the public sector space.”

“This is a conversation that we should have because in economics we say that what you earn should be equal to your output and that should be equal to what you spend. But we’re seeing this disparity. And I only used the formal public sector as a proxy for earning,” he noted.

Watch the latest edition of BizTech below:



Source: www.ghanaweb.com
Related Articles: