Category Archives: personnel economics

Latest round with @NZTreasury on salary savings on recruiting non-economists OIA #Zugzwang



.@NZTreasury does not use staff turnover & retention rates & going rates to set pay @TaxpayersUnion @EricCrampton

The average pay for an economist is about $80,000; the average pay for a sociology graduate is $60,000 according to the Careers New Zealand advice on your salary prospects for various degrees over a career.

Obviously going down market for graduates has not saved the taxpayer a single cent because they pay economists the same as non-economists despite it being easier to recruit an equally smart non-economists for less pay because they have fewer well-paid options in the rest of the labour market. It never occurred to the Treasury that changing the mix of their recruitment pool might save money!

My @DomPost op-ed on the equilibrium effects of pay transparency