Are Federal Workers Underpaid?

Chairman Ross, Ranking Member Lynch and Members of the Committee. Thank you for offering me the opportunity to testify with regard to federal employee compensation.

My name is Andrew Biggs and I am a resident scholar at the American Enterprise Institute. However, the views I express today are my own and do not represent those of AEI or any other institution.

My testimony today is based upon joint research with Jason Richwine of the Heritage Foundation. A copy of our working paper has been enclosed with my testimony.

We limit our analysis to one question: Do federal employees on average receive greater compensation than these individuals could receive in the private sector? Our answer, which is consistent with several decades of economic research, is yes. We will briefly outline federal pay with regard to salaries, benefits, and job security.

Before beginning, however, it is important to note what this analysis does not say: it does comment on the productivity of federal employees or whether the jobs they perform are worthwhile, nor does it comment on whether the number of federal employees is larger or smaller than is needed to perform the assigned tasks. It does not comment on the work or dedication of federal government employees.

It merely asks an empirical question: whether federal employees receive higher or lower pay than those employees could themselves garner in alternate employment in the private sector. . .

Read the full testimony and graphs as an Adobe Acrobat PDF

Andrew Biggs is a resident scholar at AEI.

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: Rohan Poojara
    Phone: 202-862-5852
    Email: rohan.poojara@aei.org
AEI on Facebook