Posted on 05/19/2006 4:25:10 PM PDT by lauriehelds
The pay gap between private and public sector employees seems to be a given. Just this week, 10 congressmen made their case for a higher 2007 civilian pay raise than President Bush has requested by citing a 30 percent private-public gap reported by the Bureau of Labor Statistics.
"The federal government may never be able to compete with the private sector, dollar for dollar, but we must ensure that we do not fall further behind in the battle for talent," Reps. Tom Davis, R-Va.; Jon Porter, R-Nev.; Steny Hoyer, D-Md.; Chris Van Hollen, D-Md., and others said in a letter to fellow members.
But a new paper from the libertarian Washington-based think tank the Cato Institute argues that the pay gap actually travels in the other direction. Pointedly titled "Federal Pay Outpaces Private-Sector Pay," the paper by Chris Edwards, the institute's director of tax policy studies, makes the case for freezing government salaries.
By bundling federal benefits -- including defined pensions, the Thrift Savings Plan and health care subsidies -- together with wages, Edwards calculated that the average federal worker earned $100,178 in 2004, compared to $51,876 in salary and benefits for the average private-sector worker. Those numbers were based on statistics from the Bureau of Economic Analysis.
"The federal civilian workforce has become an elite island of secure and high-paid workers, separated from the ocean of private-sector American workers who must compete in today's dynamic economy," Edwards wrote.
In an interview, Edwards said he is trying to stir the pot on an issue that has no real adversaries. Federal employee unions are so vocal on pay issues, and Washington-area congressmen, including Republicans like Davis, who chairs the Government Reform Committee, are loyal to the many federally employed voters in their districts, Edwards said.
He said he suspects the BLS studies that find such a marked pay gap, and which do not take benefits into account, are flawed.
"There are questions about how these comparisons are done," Edwards said. "If you, say, look at a government lawyer versus a private lawyer, or accountants, the responsibilities and the hours worked per week can be quite radically different."
Most compelling, he argued, is the quit rate for federal employees, which is quite low and suggests that workers are satisfied with their pay.
Edwards said in his paper that some academic studies have found government workers to be overpaid, but his citation is a 1985 study by Steven Venti at the National Bureau of Economic Research.
Why did he pull from a 20-year-old study? Because, he said, there has been so much agreement in recent years on the pay gap that no one has bothered to complete an updated independent analysis.
I'm not a federal employee. They wouldn't hire the likes of me...
However, I have seen federal employees who were brilliant and could have made fortunes in the private sector, but chose public service. I've also met federal employees who had private, inherited fortunes and worked their butts off in the public sector.
I have no illusions that there is waste in the public sector, but your comments are very, very broad and do a disservice to those public employees who really do bust their humps for not a great deal of money.
In actuality it was 1056.556342395842920567623075620672027 hours of OT.
You sure have a bug up your butt-hope you get it out someday. Your fellow employees might even consider letting you out of the broom closet if you do.
In the meantime, I'll return to my counting my ill-gotten gains.
BTW, I've more than paid my total salary, benefits and pension numerous times over the years, frequently by "collecting" from people who thought it best to NOT PAY THEIR BILLS.
Federal pensions used to be fantastic, under the old CRCS plan. The current FERS is nothing to crow about.
I agree entirely...as a state employee I know for a fact that my "private sector" counterparts make an average of 15 -35% more than I...after you acount for benefits. I don't do this for the money I do do it to help my fellow citiznes!
"your comments are very, very broad and do a disservice to those public employees who really do bust their humps for not a great deal of money"
I apologize to the handful of federal employees that actually do earn their pay and are forced to be compared with the hundreds of thousands that don't bust their humps for a lot more money than they could ever hope to earn anywhere else.
My comments are broad. They are also on target for almost all gov't employees. It's just the way it is.
They just need to keep quiet, enjoy the gravy train upon which they recline and not make so much noise about being "underpaid". They are not underpaid. They should just keep quiet. Is that too much to ask?
BC/BS standard family option about $300 per month. 20% copay,$15 office visit, $200 deductible. Dental is so low as to be nonexistent
LOL!
Let me think that one over. I'm off to work to my non-gubbmint job...
"BTW, I've more than paid my total salary, benefits and pension numerous times over the years, frequently by "collecting" from people who thought it best to NOT PAY THEIR BILLS."
Oh, you "collected" alright...... Again, your marxist analogy is more rightfully pinned on your own chest, as that is the system in which you prospered.
I just work and pay for a federal employee or two from my taxes. All I get is complaints that somehow I am too stingy.
By the way, You're welcome.
You will be discovered and forced to disgorge your ill-gotten gains (someday). Alas, I am retired and will not be around to have the last laugh on that one.
"I'm off to work to my non-gubbmint job..."
Not that you'll here this from your federally employed fellow citizens, but thanks for working hard. I'm sorry you are faced with the burden of paying for this crowd of ungrateful federal paycheck collectors.
I feel your pain.
"Since NONE of your federal tax money ever went into my salary, I don't owe you a thing. On the other hand, I bet you cheat on postage every chance you get."
Again, you're welcome. It's nice that you appreciate the folks that pay your freight so much.
"Another advantage government employees enjoy is that unused sick days add up, which can be a nice departure bonus."
There are two types of federal employees. Those hired before 1986 and those afterwards. Those hired before can use their sick leave days as you suggested. Those hired afterwards lose all unused sick leave at retirement. While that may or may not right, the net effect is that in their last year or two prior to retirement, those scheduled to lose their accumulates sick leave are sick a lot.
LOL. That's a good one.
"Your fellow employees might even consider letting you out of the broom closet if you do"
You mean my fellow hard working, tax-paying employees? I'll pass along your regards to them. They will appreciate the fact that you appreciate them so much.
It's a darned good way to lose your pension too since they'll haul you into federal court and punish you under the criminal code.
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