Thursday, October 20, 2011

Public Service wage penalty

I've always known that government workers face trade offs when comparing their compensation to similar positions in the private sector. My friend and I joke that he, as an undergraduate business major, will graduate and make at least $10,000 more on his starting job than I will in my first job after receiving a master's degree.

Recently, the Center for State and Local Government Excellence published an article that clearly distinguishes what those trade offs are. Their basic findings are:

  • State and local workers have a wage penalty of 9.5 percent.
  • Pension contributions and retiree health insurance help close the gap.
  • Total compensation for public sector workers is about 4 percent less than that in the private sector.

To read the complete report, click here.

Monday, October 3, 2011

Encouraging news for local government

When considering the turmoil many other governments find themselves in, I find comfort in my choice of serving at the local level.