The data analysis in this paper, however, indicate that public employees, both state and local government, are not overpaid. Comparisons controlling for education, experience, hours of work, organizational size, gender, race, ethnicity and disability, reveal no significant overpayment but a slight under-compensation of public employees when compared to private employee compensation costs on a per hour basis. On average, full-time state and local employees are under-compensated by 3.7%, in comparison to otherwise similar private-sector workers.
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