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While it is clear that federal workers’ wages and benefits are above market levels, it is less clear whether state and local employees are similarly overpaid. In the past year, several organizations have published studies arguing that state and local workers are underpaid. But these studies undercount or omit important benefits that public workers enjoy, leading to a substantial understatement of state and local compensation. Using the example of California, this paper provides a full accounting of state and local compensation, correcting the omissions of past studies. The conclusion is that California public employees earn up to 30 percent more in total compensation than comparable private-sector workers.

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