It Pays to Work for the BIG G

Hey Kudlow,

In 2010, the Congressional Budget Office compared government total compensation for civilian employees with total compensation in the private sector. (full study link)

It’s old news, and certainly old news to you, but to find it documented concretely is new to us. And, of course, we Heysayers are sharers and we wanted to share with you our newfound understanding.

What surprised us is that the government would actually post the results. Usually, they obscure total compensation.

What didn’t surprise us, however, were the results. The least educated make 36% more working for government. Big G employees with college degrees make 15% more. It’s only when you get to the highest education level, phd and above, that the private sector overtakes the public.

So it appears that those who persevered through graduate studies make more outside of the government than inside. For everyone else, go gov for the money.

“…, even among workers with similar observable characteristics, employees of the federal government and the private sector may differ in characteristics such as motivation or effort that are not easily measured but which can matter a great deal for individuals’ compensation.”


Great insight, Big G.

Our precog says that since Obamacare and its increased costs have kicked in fully, the government advantage has grown even more.

The big question is why? We’re still at a loss.