Do federal workers get paid more than private ones?
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Donald Marron Guest blogger
Yes, according to a new by the Congressional Budget Office. As always in such comparisons, however, there are some caveats.
CBO summarizes its main results in this handy .
Report author Justin Faulk summarizes the findings as follows:
Differences in total compensation鈥攖he sum of wages and benefits鈥攂etween federal and private-sector employees also varied according to workers鈥� education level.
Federal civilian employees with no more than a high school education averaged 36 percent higher total compensation than similar private-sector employees.
Federal workers whose education culminated in a bachelor鈥檚 degree averaged 15 percent higher total compensation than their private-sector counterparts.
Federal employees with a professional degree or doctorate received 18 percent lower total compensation than their private-sector counterparts, on average.
Overall, the federal government paid 16 percent more in total compensation than it would have if average compensation had been comparable with that in the private sector, after accounting for certain observable characteristics of workers.
Of course, a lot is riding on the phrase 鈥渃ertain observable characteristics.鈥� CBO did an extremely careful job of measuring total compensation and of controlling for observable factors such as education, age, and occupation. But many other factors are impossible to measure. CBO鈥檚 summary mentions effort and motivation. There are also issues such as job security and developing valuable skills and knowledge.
