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John Nephew

Maplewood City Council Policy & Politics


Weekend Reading: Are Local Government Workers Overpaid?

Conventional wisdom (or at least people who rail against cost-of-living adjustments) says that state and local government are paid too much compared to the private sector. A recent study commissioned by the Center for State and Local Government Excellence and the National Institute on Retirement Security examined this belief.

The authors, both economists at the University of Wisconsin, found:
Wages and salaries of state and local employees are lower than those for private sector employees with comparable earnings determinants such as education and work experience. State workers typically earn 11% less and local workers 12% less.

During the last 15 years, the pay gap has grown - earnings for state and local workers have generally declined relative to comparable private sector employees.
You can read the entire report online, or the shorter fact sheet.


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