August 18, 2010

Latest Pajamas Media Column (‘The Ruling Class Takes Care of Its Own’) Is Up

Filed under: Business Moves,Economy,Taxes & Government — Tom @ 9:03 am’s here.

It will appear here at BizzyBlog on Friday morning (link won’t work until then) after the blackout expires.


UPDATE: Found this item yesterday (HT –

Many news organizations have reported that the average federal employee earns more than the average private-sector worker.[1] Is higher federal pay justified given that the federal government employs a more skilled workforce than the private sector? Detailed analysis shows that the size of the wage discrepancies is not warranted:

  • The federal pay system gives the average federal employee hourly cash earnings 22 percent above the average private worker’s, controlling for observable skills and characteristics.
  • Including non-cash benefits adds to this disparity. The average private-sector employer pays $9,882 per employee in annual benefits, while the federal government pays an average of $32,115 per employee.
  • Overall, controlling for other factors, federal employees earn approximately 30 percent to 40 percent more in total compensation (wages and benefits) than comparable private-sector workers.
  • Federal employees enjoy job security irrespective of the state of the economy. Since the recession began, federal employment has risen by 240,000—12 percent. The unemployment rate for federal employees has only slightly risen from 2.0 percent to 2.9 percent between 2007 and 2009.
  • Federal employees demonstrate with their actions that they receive better compensation in the public sector than in the private sector: They quit their jobs at one-third the rate of the private employees.
  • Bringing federal compensation in line with private-sector compensation would save taxpayers approximately $47 billion in 2011.

That’s even before eliminating positions that are redundant, unnecessary, counterproductive, and/or better off privatized.


UPDATE 2: More from Matt Welch at


RELATED: Via ABC (HT Dr. Helen) — “Civil Servants Find Themselves Cast in Unlikely Role — Fat Cats”


1 Comment

  1. [...] This column first appeared at Pajamas Media and was teased here at BizzyBlog on [...]

    Pingback by BizzyBlog — August 20, 2010 @ 7:52 am

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