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Public-Sector Compensation: Correcting the Economic Policy Institute, Again

Previous public–private pay comparisons at the state and local levels, including numerous reports published by the Economic Policy Institute (EPI), significantly undercount public-sector pension benefits, omit retiree health coverage, and ignore job security. Using California as an example, an analysis by economists Andrew Biggs and Jason Richwine showed that these errors can produce a substantial underestimate of public-sector compensation, leading to the erroneous conclusion that public workers receive compensation at or below market levels. In its rebuttal to the Biggs-Richwine analysis, EPI repeats the same errors, necessitating this response.

State and Local Governments Must Address Unfunded Health Care Liabilities

Pilot Program Hits the Ground Running: Expands Impact

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