Chicago, IL: Workers at Illinois’ public universities are earning between 14% and 25% less than their counterparts employed directly by state government agencies, according to a first-of-its-kind study released by the Project for Middle Class Renewal (PMCR) at the University of Illinois at Urbana-Champaign and the Illinois Economic Policy Institute (ILEPI).
While economic research has shown that state government employees earn less than their counterparts in the private sector after accounting for other important factors likes education and experience (including in Illinois), no study has previously explored whether pay gaps exist within state agencies and state-funded institutions—such as public universities. Using 2019-2021 data from the American Community Survey released by the U.S. Census Bureau as well as 69 matched job titles at public universities and state agencies for 2022-2023 obtained from the Illinois Department of Central Management Services and through Freedom of Information Act (FOIA) requests, researchers tackled this issue for the first time.
The Census data reveals that that workers at Illinois’ public universities earn 14% less than their state government employee counterparts, after accounting for important factors such as hours worked, age, gender, race, urban status, marital status, veteran status, level of educational attainment, and occupation.
The comparison of 69 matched job titles finds an occupation-level pay gap of 25% less per hour for public university employees relative to their peers in state government. Once the data is weighted by the number of workers in each occupation, the annual disparity is 21% less per hour. In 64 of the 69 matched occupations (93%), public university workers average lower hourly earnings than state government employees for performing the same work.
“Public universities are economic anchors across Illinois, directly employing tens of thousands of workers and contributing billions of dollars to the economy,” said study co-author, PMCR Director, and University of Illinois Professor Robert Bruno, Ph.D. “Yet, in apples-to-apples comparisons, public universities are not maintaining competitive wages and salaries that attract and retain a qualified non-instructional workforce to serve students and communities in places like Urbana-Champaign, Normal, Charleston, Macomb, Carbondale, and Edwardsville.”
Researchers estimate that universities would have to increase compensation by $80 million annually for more than 5,600 employees to close the pay gap. They note, however, than the analysis was conducted using wage and salary information prior to the new collective bargaining agreement with AFSCME Council 31, which increased base wages by 18 percent over four years for covered employees in state government.
“When clinic nurses, library assistants, office support specialists, security guards, and similar workers earn higher incomes, they spend more money at local businesses,” said Andrew Wilson, study co-author and ILEPI Policy Analyst. “Public officials should consider eliminating this pay gap to promote economic development in communities that house universities while also improving job quality at taxpayer-funded institutions.”
The Project for Middle Class Renewal (PMCR) at the University of Illinois investigates working conditions in today’s economy to elevate public discourse aimed at reducing poverty, create more stable forms of employment, and promote middle-class jobs.
The Illinois Economic Policy Institute (ILEPI) is a nonprofit organization which uses advanced statistics and the latest forecasting models to promote thoughtful economic growth for businesses and working families.
The Illinois Update 