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

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

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