Anecdotally, I think its worse in the public sector. I know several public school teachers who have gotten graduate degrees for the sole purpose of getting a raise. Its not like a private company where you can get a bigger raise by impressing your boss.

Most school districts have what’s known as a “step and lane” salary schedule for teachers. These grids specify how much raises are worth. Teachers earn a “step” increase for each additional year of experience, with many teachers peaking with the highest “step” at around age 55.

Teachers can also earn more by having more education (those are the “lane” increases). Some districts pay teachers holding a master’s or doctoral degree a premium, while others move teachers into a higher pay column when they earn a certain number of credit hours of professional development.

https://www.edweek.org/ew/issues/teacher-pay/index.html