“Since the public sector is sheltered from international competition, developments in public sector pay have little connection with the private sector and certainly not with the international competitiveness of companies.” Fallacy No 3: “Let’s discount wage and cost developments with the (relatively) high current domestic inflation rate and we get a benign picture”, some say.
“Our wage increases of 6%  3  Unit labour costs are computed for the whole economy based on Eurostat data. Public sector wages refers to total compensation per government employee based on the OECD Economic Outlook database. The property prices are obtained from national sources as computed by the ECB. The coverage definition differs across countries.