This morning, Jason Richwine and I write in the Washington Post on the Federal Salary Council’s claim that federal government jobs on average pay 35% less than similar private sector positions. We run through a number of problems with this conclusion—one of which is that it’s simply implausible on its face that the government could retain employees while paying only 65 cents on the dollar—but the main one is that the Council’s analysis ignores differences in qualifications between government and private sector workers. There’s evidence that, even in the same job, private sector workers have more education and experience than federal employees. Once you control for that difference, the large federal “salary gap” essentially disappears.
Monday, December 9, 2013
Highlights from AEI's Special Sites