The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Thursday, January 14, 2016

The Economic Policy Institute Right-To-Work States And "less pay"

The Economic Policy Institute from time to time allows reposting excerpts from its always timely and relevant articles.  We are posting an excerpt from a piece that addresses pay disparity between Private Sector and Public Sector employees.  It is important to remember public sector employment exist at the whims of local, state and the federal government. A dynamic that places those employees in the cross hairs of political whims and political policy. Public Sector employees are almost always represented by collective bargaining units. Thus, they are more than often the targets of conservative politics and victims of GOP policy and strategy.  

While anyone in America who gives it a thought knows public sector employees earn far less than their private sector counterparts, and in aggregate, it is important to remind of how public sector employees are inadequately compensated for their critical work.

The Economic Policy Institute

Public-sector workers are paid less than their private-sector counterparts—and the penalty is larger in right-to-work states


State and local government employees already earn less than similar private-sector workers. The wage and compensation gaps between public- and private-sector workers are significantly higher in right-to-work states, which allow “free-riders” to enjoy the benefits of collective bargaining without paying their fair share of fees to support the union’s ability to negotiate on their behalf. Friedrichs v. California Teachers Association could effectively render the entire public sector right to work, pushing down wages for workers in the public sector and beyond.

ECONOMIC SNAPSHOT

Public-sector workers are paid less than their private-sector counterparts—and the penalty is larger in right-to-work states

Pay penalty for public sector workers compared with private sector workers by their state’s collective bargaining rights

WagesCompensation 
Fair share states (non-right-to-work)5.2%0.8% 
Right-to-work states14.1% 10.4% 
5.2%wage penalty14.1%wage penalty0.8%compensationpenalty10.4%compensationpenaltyFair share states (non-right-to-work)Right-to-work states


In right-to-work states, public-sector employees earn 14 percent less in wages than their private-sector counterparts. Factoring in compensation, public-sector employees suffer a 10.4 percent wage penalty compared to their private-sector counterparts.

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