[quote=EconProf]CAR: you cite many instances of public sector unions giving in on pay or retirement benefits. About time. Since the CA public sector workers make nearly twice as much as the CA private sector workers, this is only the beginning. The public is finally learning of the abuses of government unions and is demanding some giveback.[/quote]
More complete and utter bullshit spewed by the privatization movement.
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But according to a new study published by the Center for State & Local Government Excellence and the National Institute on Retirement Security, these aggregate compensation comparisons are misleading. The authors, University of Wisconsin-Milwaukee economics professors Keith A. Bender and John S. Heywood, assert that state and local government workers are better educated and have more work experience, on average, than do private sector workers, so it is natural that their overall average compensation would be higher. “Thus,” they conclude, “the fact that public sector workers receive greater average compensation than private sector workers should be no more surprising than the fact that those with more skills and education earn more.”
Furthermore, after attempting to control for such variables, they find that state and local government workers actually earn less than their private sector counterparts. According to the analysis, state government workers earn an average of 11.4 percent less than private-sector workers of similar education and work experience and local government workers earn 12.0 percent less. Due to the greater benefits received by public sector workers, the gap narrows when these benefits are factored in, to 6.8 percent and 7.4 percent, respectively. (Even this appears to underestimate the cost of the benefits provided government workers, as discussed below.)
