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
What's new on AEI
![]() |
A farm bill bait and switch |
![]() |
Corker-Warner bill retains fatal flaw of GSE model |
![]() |
Gas engine stands the test of time |
![]() |
Women and the unequal pay myth |

Join the AEI Media List
-
17
MON -
18
TUE -
19
WED -
20
THU -
21
FRI
Join New York Times columnist David Brooks as he engages the authors of “Brainwashed: The Seductive Appeal of Mindless Neuroscience” Sally Satel and Scott Lilienfeld, in a discussion of popular neuroscience.
Please join us for a preview of the revised and updated edition of Jonathan Nuechterlein and Philip Weiser’s influential 2005 book “Digital Crossroads: Telecommunications Law and Policy in the Internet Age” (MIT Press).
At this event, three expert panelists will examine this relationship from the perspectives of influential philosophers such as Aristotle, Alexis de Tocqueville, and representatives of the Scottish Enlightenment.
This event has been canceled. We apologize for any inconvenience.
At this event, Bennett and Wilezol will present their book, higher education finance experts Richard George and Richard Vedder will provide discussion, and a coffee reception and book signing will follow.
Join General Michael Hayden (ret.), AEI’s Marc Thiessen, and other leading experts in national security for a panel discussion on the significance of the NSA leaks.
Please join us for an event celebrating the release of Glenn Hubbard and Tim Kane’s “Balance: The Economics of Great Powers from Ancient Rome to Modern America” (Simon & Schuster, May 2013).
In light of the emerging Internal Revenue Service scandal, Senator McConnell will again join AEI to comment on the use of government power to stifle speech and will propose solutions that protect the individual rights that are guaranteed to all citizens of the United States.







