Tag: Government Pay

Everything You Need to Know about Whether State and Local Bureaucrats Are Over-Compensated, in One Chart

The showdown in Wisconsin has generated competing claims about whether state and local government bureaucrats are paid too much or paid too little compared to their private sector counterparts.

The data on total compensation clearly show a big advantage for state and local bureaucrats, largely because of lavish benefits (which is the problem that  Governor Walker in Wisconsin is trying to fix). But the government unions argue that any advantage they receive disappears after the data is adjusted for factors such as education.

This is a fair point, so we need to find some objective measure that neutralizes all the possible differences. Fortunately, the Bureau of Labor Statistics has a Job Openings and Labor Turnover Survey, and this “JOLTS” data includes a measure of how often workers voluntarily leave job, and we can examine this data for different parts of the workforce.

Every labor economist, right or left, will agree that higher “quit rates” are much more likely in sectors that are underpaid and lower levels are much more likely in sectors where compensation is generous.

Not surprisingly, this data shows state and local bureaucrats are living on Easy Street. As the chart illustrates, private sector workers are more than three times as likely to quit their jobs.


This helps explain why the unions are treating the Wisconsin debate as if it was Custer’s Last Stand. The bureaucrats know they have comfortable sinecures and they are fighting to preserve their unfair privileges.

The only bit of semi-good news for Wisconsin taxpayers is that state and local bureaucrats are not as lavishly over-compensated as federal bureaucrats.

This Center for Freedom and Prosperity video looks at all of the data and reveals a pecking order. Federal bureaucrats are at the kings and queens of compensation. State and local bureaucrats are like the nobility. And private sector taxpayers are the serfs that worker harder and earn less, but nonetheless finance the entire racket.

The video closes with a very important point that the right pay level for many bureaucrats is zero. This is because they work for programs, departments, and agencies that should not exist.

Perceptions of Government Pay

A new poll by Rasmussen finds that the general public has an accurate assessment of government worker pay.

Compared to the average government worker, most Americans think they work harder, have less job security and make less money.

In fact, 59% of Americans say the average government worker earns more annually than the average taxpayer, according to the latest Rasmussen Reports national telephone survey. Just 15% don’t believe that to be true, while another 26% are not sure.

Among those who have close friends or relatives who work for the government, the belief is even stronger: 61% say the average government worker earns more than the average taxpayer.

Feeding that belief is the finding that 51% of all adults think government workers are paid too much. Only 10% say they are paid too little, while 27% say their pay is about right.

Bureau of Labor Statistics data indeed shows that government workers work fewer hours in a year and have much higher job security than private sector workers. And I’ve argued that they are generally overpaid, and by increasing amounts.

For more, check out:

Pampered European Bureaucrats Threaten Strike

There’s been a lot of attention given to overpaid government workers in America, as many people have documented, but the problem is global. Bureaucrats who work for the European Union get lavish pay and benefits, yet are threatening to strike because of a proposed pay freeze. These mandarins already pay reduced taxes, get a host of special allowances, and even have the gall to demand free travel on public transport. Interestingly, as this story for Euractiv.com indicates, they apparently realize they have privileged positions and are worried that the current controversy may spark some resentment from over-burdened taxpayers:

Staff at the European institutions are preparing to go on strike next week in a bitter pay dispute sparked by national governments’ decision to block a routine salary increase for EU civil servants. Civil service staff are due to receive a 3.7% pay hike… There is widespread acceptance that the pay rise is legally binding but other options are currently under consideration – much to the chagrin of unions. Diplomatic sources indicated it may be possible to proceed with the 3.7% pay rise, but to initiate a parallel move which would effectively negate the increase. This could include increasing the so-called ‘crisis levy’, which allows European civil servants to be taxed in exceptional circumstances.  …Diplomats said some EU civil servants are concerned that the dispute could open a can of worms if the spotlight is turned on their generous pay and benefits, including the permanent repatriation allowance paid to civil servants – even if they have been in Brussels for 30 years.