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There are notable differences between federal and private-sector STEM workers

• There are more advanced degree holders among federal STEM workers than private-sector workers, but the federal STEM workforce skews older in age.
• Overall, there is relatively more gender and racial/ethnic diversity in the federal STEM workforce, although the private sector has a larger share of Asian and foreign-born workers.
• Women and minorities face pay disparities in both sectors, but somewhat less so in federal employment.

Comparing average income for private-sector and federal STEM workers indicates private-sector STEM workers earn more after controlling for observable differences

• Private-sector STEM workers earn about $2,600 more in annual pay than federal STEM workers once observable differences are taken into account.
• However, STEM workers in the federal government work shorter hours on average and are more likely to have access to benefits than STEM workers in the private sector.

Potential impediments to federal STEM hiring and retention merit further exploration

• If federal job postings are not readily accessible and comprehensible, this may prevent prospective workers from applying.
• If the hiring process is too lengthy or onerous, workers may turn to the private sector.
• Federal shutdowns, pay freezes, and frequent leadership changes or lengthy vacancies may negatively affect hiring and retention.

Current data collection processes have limitations

• Data limitations influenced how RAND's study was conducted, and, in some areas, impeded researchers' ability to draw definitive conclusions.
• Notably, data sets with the best coverage for each sector differ in how they conceptualize, collect, and report income.

In a companion report to the 2019 National Defense Authorization Act, the U.S. Senate Committee on Armed Services directed the Department of Defense, in consultation with the Office of Personnel Management and the Department of Energy, to conduct a comparison of salary and benefits for government professional engineers and scientists with those for workers in similar positions in the private sector. Asked to undertake this analysis, RAND researchers interpreted "engineers and scientists" as the science, technology, engineering, and mathematics (STEM) workforces in the public (federal civilian) and private sectors.

The authors compiled and analyzed workforce data from U.S. government sources and available literature to describe and compare trends in private- and public-sector STEM employment levels, unemployment rates, work hours, salary, and benefits. Where data were available, they also conducted subgroup analyses of these trends based on demographics, education levels, occupational categories, and geographic regions. In this report, the authors examine why STEM workers are of special interest to national defense and the civilian economy. They describe and compare the characteristics, employment trends, and pay levels of the private- and public-sector STEM workforces to their non-STEM counterparts. The report concludes with a discussion of how compensation is but one component of hiring and retaining qualified workers in the federal government and presents a set of policy and research recommendations.

• Chapter One

  Introduction to Science, Technology, Engineering, and Mathematics in the Workforce

• Chapter Two

  The Private-Sector STEM Workforce

• Chapter Three

  The Federal Public-Sector STEM Workforce

• Chapter Four

  Comparing Federal and Private-Sector STEM Compensation

• Chapter Five

  The Department of Defense STEM Workforce

• Chapter Six

  Discussion

• Appendix A

  STEM Occupations and Crosswalks

• Appendix B

  Federal Policy Background

• Appendix C

  Detailed Pay, Income, and Comparisons for Federal and Private-Sector STEM Workers