Are state and local public-sector workers, such as Firefighters, compensated more than the private-sector workers?  If you watch the news you may have noticed many public officials stating this as fact.

"It used to be that public employees were underpaid and over-benefited.  Now they are over-benefited and overpaid compared to their private-sector counterparts."

Governor Time Pawlenty of Minnesota

"Average government workers are now making $30,000 a year more that the average private-sector worker."

Former Governor Mitt Romney of Massachusetts

"Almost every study says [government employee compensation levels] are between 17 and 24% higher.  So we have to reflect the people we work for."

Mike Bouchard, Candidate for governor in Michigan

Although these statistics sound convincing, no evidence has shown these statements to be true.  To the contrary, a study by the Economic Policy Institute in September 2010 showed that the myth of the overcompensated public employee is just that, a myth.  This briefing paper actually shows that the public-sector employee is undercompensated by 3.7% in comparison to otherwise similar private-sector employees.  While certain public officials point out lavish pensions and health insurance benefits for the public worker, what they fail to mention is a true comparison of the total compensation among these two classes.  The EPI study, whose findings have been replicated in two other studies (Schmitt 2010; Bender and Heywood 2010), takes into effect education, experience, hours of work, defined benefit pensions, health insurance, time off accrual, and organizational size.  For example, regarding the most important factor in determining earnings; educational level, Firefighters get paid on average 2% less; Fire Captains 6% less; and Fire Chiefs 32% less than private-sector workers with the same level of education.  To read the entire study, click on the link below.

www.employmentpolicy.org/sites/www.employmentpolicy.org/files/Debunking%20the%20Myth.pdf