This is not the case in Canada, though I can't comment on other countries. Firstly, we pay our technology professionals rather well compared to the majority of the private sector (i.e banks, but not startup world). Secondly, there's an enormous safety net, including defined benefits pensions.

Years ago I was going to work for CSIS (Canadian Secret Intelligence Service. Their offer was 90% of my base salary, a 25% bonus pool, and benefits that clearly brought my total compensation well above my situation. I have friends who have made that decision - they're paid quite competitively, the published Sunshine List illustrates this.

You go into the public sector to serve, and you get mediocre pay and tremendous stability and generous, long-lasting benefits in exchange. Nobody's twisting your arm. Feel free to live in a dumpster in SV and make $400k building the next generation of dystopian garbage if you prefer.