Study Finds State Workers Earn Same as Comparable Private Sector Workers

Co-authors Sylvia Allegretto of UC Berkeley and Jeffrey H. Keefe, an associate professor of labor and employment relations at Rutgers University’s School of Management and Labor Relations, further found that, when benefits are factored in, employees in California public service earn about the same as their counterparts in the private sector.

“CSU classified staff employees bring a tremendous amount of added value to our state’s higher education system while typically earning no more, no less than their private sector counterparts,” said CSUEU President Pat Gantt. “This study reinforces what we have been saying for a long time: far from burdening California with pension issues, CSUEU-represented employees’ modest salaries and benefits are far outweighed by their invaluable contributions.”

Key conclusions from the brief included:

• The results provide strong evidence that California public employees are not over-compensated when compared with similar, private sector workers
• Public employees are not overpaid when you make an "apples-to-apples" comparison of employees' education, experience and other factors that might influence pay
• Despite the attention being paid by the governor and other politicians this year to rising public pension costs, those costs make up a small fraction of state spending
• The findings should put to rest some of the arguments over high public compensation

Read a San Francisco Chronicle article about the study.
Read the study (PDF).
Read a UC Berkeley media advisory about the study.