Should Congress refreeze federal worker pay?

Tomorrow, the House of Representatives will consider a bill to partially refreeze federal employees pay--overriding an executive order issued late last year by President Obama that ended the pay freeze.

American Enterprise Institute (AEI) economist Andrew Biggs offers the following research to consider:

1. Underpaid? The claim that federal employees are underpaid by more than 20% versus private sector workers are highly misleading, ignoring both fringe benefits and the relative skills of federal and private workers. (link)

2.  Higher Salaries and Benefits: Most independent analyses of federal employee pay – including from AEI and the Congressional Budget Office – find that federal employees receive higher salaries and benefits and similar private sector workers.

3.  Go Private, Get Less: Most federal workers who leave for private sector jobs don’t get a pay increase – they accept a salary cut. (link)

4.  Salaries Rising: Since 2007 federal employee salaries have risen by an average of 15%, while private sector salaries have risen by only 10%. The idea that federal workers are falling behind the private sector isn’t correct. (link)

Andrew Biggs has written extensively on public sector compensation and is available for interviews. Please contact mediaservices@aei.org or 202.862.5829

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About the Author

 

Andrew G.
Biggs
  • Andrew G. Biggs is a resident scholar at the American Enterprise Institute in Washington, DC. Prior to joining AEI he was the principal deputy commissioner of the Social Security Administration (SSA), where he oversaw SSA's policy research efforts and led the agency's participation in the Social Security Trustees working group. In 2005 he worked on Social Security reform at the National Economic Council and in 2001 was on the staff of the President's Commission to Strengthen Social Security. Andrew’s work at AEI focuses on Social Security reform, state and local government pensions, and comparisons of public and private sector compensation. His work has appeared in academic publications as well as outlets such as the Wall Street Journal, New York Times and Washington Post, and he has testified before Congress on numerous occasions. He holds a Bachelors degree from the Queen's University of Belfast, Masters degrees from Cambridge University and the University of London and a Ph.D. from the London School of Economics.

  • Phone: 202-862-5841
    Email: andrew.biggs@aei.org
  • Assistant Info

    Name: Veronika Polakova
    Phone: 202-862-4880
    Email: veronika.polakova@aei.org

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Tuesday, May 21, 2013 | 5:00 p.m. – 6:30 p.m.
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Competing visions of the common good: Rethinking help for the poor

What shared commitments do we have as citizens and neighbors to care for one another? How can a proper ordering of America’s political economy enable the most people to have the best life? At this event, Rep. Frank Wolf (R-VA), a longtime champion of human rights causes, and AEI President Arthur Brooks will join Wallis in addressing these and other questions.

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