Comments on 'comparing compensation: state-local versus private sector workers,' center for state and local government excellence

I and my co-author, Jason Richwine of the Heritage Foundation, entered the discussion on public sector compensation largely in response to a paper published by the Center for State and Local Government Excellence (CSLGE) in April 2010 titled “Out of Balance? Comparing Public and Private Sector Compensation Over 20 Years.” This paper, authored by Keith Bender and John Heywood, concluded that, on average, state and local government employees received total wages and benefits around 7 percent lower than private sector workers with similar education, experience and other attributes. Jason and I argued that this was likely an underestimate, as the study understated the value of public sector defined benefit pensions, omitted the value of retiree health coverage that is predominant in the public sector, and excluded the value of public employees’ greater job security. Our critique was extended to a series of additional papers published by the Economic Policy Institute and authored by Rutgers University Professor Jeffrey Keefe.

Andrew Biggs is a resident scholar at AEI.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Andrew G.
Biggs

What's new on AEI

AEI Election Watch 2014: What will happen and why it matters
image A nation divided by marriage
image Teaching reform
image Socialist party pushing $20 minimum wage defends $13-an-hour job listing
AEI on Facebook
Events Calendar
  • 27
    MON
  • 28
    TUE
  • 29
    WED
  • 30
    THU
  • 31
    FRI
Monday, October 27, 2014 | 10:00 a.m. – 11:30 a.m.
State income taxes and the Supreme Court: Maryland Comptroller v. Wynne

Please join AEI for a panel discussion exploring these and other questions about this crucial case.

Tuesday, October 28, 2014 | 9:30 a.m. – 12:15 p.m.
For richer, for poorer: How family structures economic success in America

Join Lerman, Wilcox, and a group of distinguished scholars and commentators for the release of Lerman and Wilcox’s report, which examines the relationships among and policy implications of marriage, family structure, and economic success in America.

Tuesday, October 28, 2014 | 5:30 p.m. – 7:00 p.m.
The 7 deadly virtues: 18 conservative writers on why the virtuous life is funny as hell

Please join AEI for a book forum moderated by Last and featuring five of these leading conservative voices. By the time the forum is over, attendees may be on their way to discovering an entirely different — and better — moral universe.

Thursday, October 30, 2014 | 2:00 p.m. – 3:00 p.m.
A nuclear deal with Iran? Weighing the possibilities

Join us, as experts discuss their predictions for whether the United States will strike a nuclear deal with Iran ahead of the November 24 deadline, and the repercussions of the possible outcomes.

Thursday, October 30, 2014 | 5:00 p.m. – 6:15 p.m.
The forgotten depression — 1921: The crash that cured itself

Please join Author James Grant and AEI senior economists for a discussion about Grant's book, "The Forgotten Depression: 1921: The Crash That Cured Itself" (Simon & Schuster, 2014).

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.