Who makes more, public or private sector workers?

Here's another round in the never-ending attempt to compare compensation for public and private employees. The comparison could be more complicated than rocket science, and any effort to explain it is near heroic. But this comparison, done by Josh Rauh of the Kellogg School of Management does make one important point:

This all suggests that public sector unions may not be very effective at raising compensation on a case-by-case basis. But one role they clearly have played as a group is to resist measures that would bring the true costs of public sector benefits to light. Currently these costs are concealed from the public by the flawed economics of the Government Accounting Standards Board (GASB) methods. And public sector unions are clearly not in favor of changing these standards, as revealed for example by their opposition to the Public Employee Pension Transparency Act.

Seems to me thats if more transparency is required of financial institutions, the same should be required of public employee unions. Here's a summary of the bill.




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  • The referenced bill has to do with pension bonds, which is the way the state of Illinois is trying to finance pensions, so it at least germane.

    The thing I figure is that, statistics or no statistics, people wouldn't be using clout to get public jobs and then claim that their constitutional rights are violated if anyone does anything about their pensions.Instead, they would try to get jobs in the private sector. Thus, I don't buy arguments such as that the incompetent Forrest Claypool deserves $193K a year to oversee 10,000 at the CTA. He supposedly had a job in the private sector, running some gobbledygook health system, but gave that up.Then you have the pension double dippers. Also, note all the current garbage about "I have to give [public employees] a raise to keep them, even though the state is broke." There is an obvious economic reason why these people "work" in the public sector, and it sure isn't (in 99% of the cases) that they are "sacrificing for the public good."

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