Final answer:
Jobs in higher hierarchy positions of the public sector tend to be paid less than similar positions in the private sector due to levels of indirect pay, publicly visible salaries, and the presence of strong unions.
Step-by-step explanation:
One condition that tends to explain why jobs in higher hierarchy positions of the public sector tend to be paid less than similar positions in the private sector is the levels of indirect pay provided to senior public sector positions.
While salaries may be lower in the public sector, senior positions often come with additional benefits such as pensions, healthcare, and more job security.
Furthermore, publicly visible salaries in the public sector can play a role in the pay difference.
As the salaries of public officials are often disclosed and subject to public scrutiny, there may be pressure to keep those salaries lower.
Another factor is the presence of strong unions in the public sector. Strong unions can negotiate for higher wages and better working conditions, which may lead to higher pay in the private sector.