The Wage Penalty for State and Local Government Employees in New England
AbstractThe authors demonstrate that the average state or local government worker earns higher wages than the average private-sector worker—but only because they are, on average, older and substantially better educated. More than half of state and local government employees in New England have a four-year college degree or more, and 30% have an advanced degree. By contrast, only 38% of private-sector workers have a four-year college degree or more; and only 13% have an advanced degree. The wage gap becomes more significant at higher-paid professional levels. The lowest paid government workers do earn slightly more than their private counterparts, but for high-wage workers, the wage penalty for working for a New England state or local governments rises to almost 13%.�And while state and local workers on average do indeed receive more valuable benefits than private-sector workers, the difference only reduces the wage penalty for the average state and local government worker.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp233.
Date of creation: 2010
Date of revision:
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dean Baker & Rivka Deutsch, 2009. "The State and Local Drag on the Stimulus," CEPR Reports and Issue Briefs 2009-17, Center for Economic and Policy Research (CEPR).
- John Schmitt, 2008. "The Union Wage Advantage for Low-Wage Workers," CEPR Reports and Issue Briefs 2008-17, Center for Economic and Policy Research (CEPR).
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Public employees are better paid for a reason
by Economic Logician in Economic Logic on 2010-10-28 15:42:00
- Philipp Bewerunge & Harvey S. Rosen, 2012. "Wages, Pensions, and Public-Private Sector Compensation Differentials," Working Papers 1388, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Jan K. Brueckner & David Neumark, 2011.
"Beaches, sunshine, and public-sector pay: theory and evidence on amenities and rent extraction by government workers,"
2011/42, Institut d'Economia de Barcelona (IEB).
- Jan K. Brueckner & David Neumark, 2011. "Beaches, Sunshine, and Public-Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers," NBER Working Papers 16797, National Bureau of Economic Research, Inc.
- Maury Gittleman & Brooks Pierce, 2012. "Compensation for State and Local Government Workers," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 217-42, Winter.
- Robert Pollin, 2013. "Austerity Economics and the Struggle for the Soul of U.S. Capitalism," Working Papers wp321, Political Economy Research Institute, University of Massachusetts at Amherst.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Judy Fogg).
If references are entirely missing, you can add them using this form.