Excerpted from “
Are Wisconsin Public Employees over-compensated?” (pdf) By Jeffrey H. Keefe,
Economic Policy Institute, February 10, 2011
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[SIZE="+2"]T[/SIZE]]he data indicates that state and local government employees in Wisconsin are not overpaid. Comparisons controlling for education, experience, organizational size, gender, race, ethnicity, citizenship, and disability reveal that employees of both state and local governments in Wisconsin earn less than comparable private sector employees. On an annual basis, full-time state and local government employees in Wisconsin are undercompensated by 8.2% compared with otherwise similar private sector workers. …
This earnings gap between public and private sector employees becomes even more significant as workers gain more education. On average, the private sector pays workers with four-year college degrees and advanced degrees substantially more in the form of higher wages and compensation than does the public sector. State and local workers with a bachelor’s degree make 28% less in salary and 25% less in total compensation, while those with a professional degree make 38% less in salary and 36% less in total compensation. In state and local government, workers with a master’s degree earn on average 29% less in salary and 26% less in total compensation, while those with a doctorate earn 30% less in salary and 29% less in total compensation. …
Rather than a cause of excessive compensation, unionization is a counterbalance to downward pressures on compensation. It is well known that taxpayers oppose higher taxes and thus exert considerable pressure on elected representatives to resist increases in compensation, creating a formidable incentive and opportunity to hold government pay below market. Unionization represents a viable legal response to employer labor market power. …