Employee Compensation in Ohio Public vs Private Sector ：在俄亥俄州的公共与私人部门雇员补偿.docxVIP

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Employee Compensation in Ohio Public vs Private Sector ：在俄亥俄州的公共与私人部门雇员补偿.docx

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Employee Compensation in Ohio Public vs Private Sector ：在俄亥俄州的公共与私人部门雇员补偿

Public vs. Private Sector Employee Compensation in OhioCarla Edlefson, Ph.D.Ashland Universitycedlefso@Association for Education Finance and PolicyBoston, MAMarch 16, 2012AbstractTwo studies of public versus private sector employee compensation made headlines during the political debate over public employee collective bargaining in Ohio. One was conducted by Biggs and Richwine of the American Enterprise Institute and released by the Ohio Business Roundtable. The other was conducted by Keefe for the Economic Policy Institute. Both studies concluded that in Ohio public employees earned somewhat less in wages than private sector employees. However when benefits were included, Keefe found that public employees earned about 6% less in total wages and nonwage compensation, while Biggs and Richwine determined that public employees earned 43% more in total compensation. This paper contains an analysis of the assumptions and procedures used by the two sets of researchers as they arrived at such different conclusions. Key differences were in Biggs and Richwine’s treatment of (a) defined benefit vs. defined contribution retirement plans, (b) retiree health care, and (c) job security. The approaches used in both studies are compared with the literature on public vs. private sector compensation.IntroductionOhio was one of the states in 2011 whose new Republican governor and Republican-led general assembly enacted legislation greatly curtailing public employee collective bargaining. Governor John Kasich signed Senate Bill 5 on March 31, 2011 (Hallett, 2011). These changes were among those made to Ohio’s collective bargaining and public compensation statutes: prohibited strikes for teachers and other public sector workers; replaced binding arbitration for safety forces with the employer’s last best offer; excluded certain topics, such as teachers’ class size, that could be lawfully bargained in contract negotiations; prohibited contracts from including a fair share fee to be