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"Our goal is not to have the government micromanage private sector compensation".
- Retirement benefits account for 8.2percentt of public employee compensation and 3.6percentt of private sector compensation, while public workers earn considerably less supplemental pay and vacation time, and their employers contribute much less to legally-mandated benefits.
And in Wisconsin, where Gov. Scott Walker's face-off with unions has thrust public sector compensation into the national spotlight, the state pays janitors a median wage of nearly $27,000, about the same as they would make in the private sector.
Comparing Public and Private Sector Compensation Over 20 Years, a study from the Center for State and Local Government Excellence by Keith A. Bender and John S. Heywood; (2) Are State and Local Government Employees Paid Too Much? by Ford Fessenden in the New York Times; and (3) Comparing Private Sector and Government Worker Salaries by Adam Summers from the Reason Foundation.
It is highly questionable as to why public service workers receive more favorable repayment terms than those in the private sector, especially given recent reports that public sector compensation has risen nearly 50% faster than private sector compensation since 2007, and that the average hourly public sector compensation was 45% higher than the private sector average in 2009.
The driver of income inequality is the growth of financial sector compensation.
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The worry is that instead, even fewer affordable homes will be built as a result of the cuts, with no private-sector compensation.
Rajan pointed out that the structure of financial-sector compensation, in combination with complex financial products, gave bankers huge cash incentives to take risks with other people's money, while imposing no penalties for any subsequent losses.
"It's as American as apple pie, and deeply destructive," said John D. Donahue, a lecturer in public policy at the John F. Kennedy School of Government at Harvard who has studied public- and private-sector compensation.
The California rule applies only to public employees, and it's known that public-sector compensation packages are more heavily weighted toward pension benefits than are their private-sector counterparts.
On disclosure forms for 2001 and 2002, Obama did not specify that EKI provided him with the bulk of the private-sector compensation he received.
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