From the AP:
Rutgers study: Government workers paid more than private workers
State and local government employees earn more than private-sector workers, mainly because the income of those working for private companies has eroded over the past few decades, a Rutgers University study found.
That counters conventional wisdom that government workers make less than their private-sector counterparts even while being compensated with generous benefits and more job security.
…
“Private-sector workers, particularly the less-educated and less-skilled, have not been keeping up with inflation for the last three decades,” Rodgers said Wednesday.
…
Rodgers found that private-sector male workers went from making $24.68 an hour in 1970 to only $23.72 in 2000, after adjusting for inflation and recalculating the numbers in 2006 dollars. Male state workers jumped from making $23.25 an hour in 1970 to $27.28 an hour in 2000, with a similar pattern for local government employees.Among women, private-sector workers improved from $13.68 an hour in 1970 to $17.75 in 2000, while state workers jumped from making $18.66 to $22.33 an hour over the same period.
…
Rodgers said he decided to do the analysis after the public-private wage gap was debated last year among fellow members of a benefit review task force put together by then-Gov. Richard J. Codey. Rodgers said he thought an objective analysis would be helpful, given that worker benefits – long considered necessary to attract and keep a stable civil service – are a major issue in negotiations for state worker contracts.
…
Phil Kirschner, president of New Jersey Business and Industry Association, said it is unfair for taxpayers to pay for not only the higher salaries of government workers, but “benefit packages far in excess of what private-sector workers” receive.
This must be wrong, our friend that is a teacher says she would make over 100,000 in the private sector.
She only makes 88,000 now plus paid sick days,benifits that could bury a state{ NJ}, and works a full 9 months a year.
She is so underpaid, but don’t worry she is retiring @ 55, with full healthcare and 51,000 per year.{ this year}
don’t you all feel sorry for her?
While all of this article and the comment may be true, I think the question should be why bring government workers down to the level of corporate wage slaves rather than forcing corporate America to offer retirement at half salary and healthcare. Or should we make sure that a teacher making 88K is destitute unless she works until 70? Or give her 100K and tell her to invest in a 401K and hope that will fund her retirement?
Yeltsin
I agree that the private sector is in a race to the bottom when it comes to wages and benefits, especially for people with no advanced degrees. We all want to see people making decent livings. However, it is unfair for people working in the private sector who are really struggling with health care cost spiral, stagnant wages and disappearing pensions to subsidies state and union employees who have secure jobs, hefty pension plans and lets face it much less pressure jobs oh and retirement at 55. It is just wrong.
Hope you have overcome your drinking problems Yeltsin (just kidding)
Don’t worry yeltsin, she will not be destitute, they could always sell their other house at the nj shore.
Not many people here in nj can do that,but we make about 20% less money.
JIM
Add to the fact that teachers in NJ are elgible for housing subsidies in urban areas. The former mayor of Hoboken, and current resident of the Federal Pen, Anthony Russo was living in subsidized housing due to his teaching credentials.
I will agree that teachers for the most part are payed way too much. Education in general has overcompenstated for the 70’s and 80’s. The degrees are enerally easier to get even the masters program is often redundant with alot of overlapping coursework from undergrad.
That said, education has become an insiders club where you often need connections to get a position in a high paying school district. The alternative route to certification is difficult to go through further reducing the # of candidates, yet check to see how many applicants there are for every position. (a ton!)
One of my interns this past summer is looking for a position and is having all kinds of trouble finding a position and his dad has connections.
As for the dollar amounts that gov’t employees earn, I have seen what they earn atleast in NW Jersey. It does not match what is presented here, it is much less. I would love to see where the study gleened its stats.
As for me I have a masters degree and I do not make what that mythical state worker makes in the example given for 2000. I am skilled at what I do and feel maybe I am worth more, CA and AZ pay way more for what I do with less skill sets.
I feel the gripe featured in this article is misdirected, with all the productivity gains of the last few years and the historic profitability of corporations, I feel animus should be aimed at corporate America and insurance companies.
Corporate America for not sharing its gains with its workers (which it used to).
Insurance companies for the explosion in healthcare costs. Why them? What is the overhead costs for medicare or the VA healthcare programs? Answer 3%! What is that same overhead expense for the typical insurance company? Over 30%, specifically to figure out how not to pay a claim. The movie the incredibles illustrates it very well. All I have to say is I think fingers need to be pointed to alot more places where abuse is present, like executive pay & executive boards governance rules. That my friends is where America is getting ripped off.
Rant over.
There was a good Frontline program last week re the pension/401-K issue in corporate america and the general consensus is that most boomers will need to work in their retirement. The responsibility lies both with corps for dumping their pensions and in some instances not fully educating employees re their 401-K programs but also with the employees themselves for not taking the time to understand the program. I could more easily stomach pension dumping for 401-k’s if executive pay wasn’t so out of whack with rank & file salaries. It’s ridiculous their golden parachutes etc
There was a good Frontline program last week re the pension/401-K issue in corporate america and the general consensus is that most boomers will need to work in their retirement. The responsibility lies both with corps for dumping their pensions and in some instances not fully educating employees re their 401-K programs but also with the employees themselves for not taking the time to understand the program. I could more easily stomach pension dumping for 401-k’s if executive pay wasn’t so out of whack with rank & file salaries. It’s ridiculous their golden parachutes etc
Hey there, hold on. Teachers in other states hardly make anything. I make nowhere near 88,000, nor do my administrators, who work 70-80 hour weeks
But do you make more than the hypothetical 27/hr in 2000 state worker. If we are going to get personal many police departments are way overpayed. The parade magazine had an NJ trooper making over 100K after 6 years. WTF.
Milton Friedman on Limited Government:
[video]
http://video.google.com/videoplay?docid=6813529239937418232&hl=en
I love the “highly educated” (or was that edumacated) state employees who claim they are not “overpayed”.
And somehow blaming corporations for not matching the absurd gov’t pay & work rules is a classic straw man argument.
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