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
Should Congress refreeze federal worker pay?
February 14, 2013
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