http://www.jsonline.com/news/opinion/119023584.html<snip>
The pretext for such cuts is that public employees are overpaid. Govs. Scott Walker of Wisconsin, Chris Christie of New Jersey and Rick Scott of Florida, among others, assert that public-sector employees are paid 30% more than private-sector employees, and they conclude that cuts therefore can be made without much exodus of employees. They arrive at this figure by comparing average salaries in the private and public sectors.
But there is a flaw in using this simple comparison of all private-sector workers to all public-sector workers: It ignores the different mixtures of task and talent requirements, essentially a comparison of fruit when there are different mixtures of apples and oranges. For example, since so many public employees are teachers and other professionals, the percentage of people with advanced degrees is higher in the public sector.
To make the more accurate comparison that accounts for differences in tasks, education levels, experience and labor market competitiveness in the two sectors, advanced statistical work is required. Numerous statistical studies - including the frequently cited study by economists Keith Bender and John Heywood of the University of Wisconsin-Milwaukee - have shown that there is no premium for working in the public sector, even when taking benefits into account.
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