CBO Confirms AEI Report: Federal Workers Overpaid

A new Congressional Budget Office (CBO) study finds that federal government employees receive significantly higher compensation than private sector workers with the same levels of education and experience. The CBO report confirms the conclusions of AEI economist Andrew Biggs's 2010 study, and helps rebut claims that federal workers are underpaid.

Specifically, CBO found that federal employees receive:

  • Average salaries that are about 2 percent higher than those for similar private sector employees.

  • Average federal benefits that exceed private sector levels by 48 percent

  • A total average federal compensation which is 16 percent above private sector levels

CBO's methods are broadly consistent with those used in Biggs's 2011 AEI study, and serve as a valuable contrast to figures generated by the federal Office of Personnel Management which claims that federal employees make 26 percent less than workers in the private sector.

Andrew Biggs previously served as the principal deputy commissioner of the Social Security Administration where he oversaw the agency's policy research efforts and was also the associate director of the National Economic Council at the White House. He can be reached at [email protected] or through his assistant Rohan Poojara at [email protected] (202.862.5852).

For help reaching any AEI scholars and for all other media requests, please contact Jesse Blumenthal at [email protected] (202.862.4870).

AEI's in-house ReadyCam TV studio may be booked by calling VideoLink at 617.340.4300. For radio interviews, please e-mail [email protected] to reserve AEI's ISDN facilities.

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