U of I study dispels overpaid worker myth

A new study confirms what public workers in Illinois already knew – their salaries and benefits aren’t the cause of the state’s financial woes.

The study, co-authored by University of Illinois Professor Robert Bruno and research associate Frank Manzo IV, found that on average, state workers in Illinois made 13.5 percent less than private-sector workers with comparable educations.

“When you control for education and other demographic variables, it turns out that public sector workers suffer a wage penalty,” Bruno said. “So it’s a myth that state workers in Illinois are overpaid, and to lay the blame for the state’s budget woes and underfunded pensions on state workers is just plain false.”

The study’s results validate the 15 months state workers stood united while negotiating a new contract with Gov. Pat Quinn’s administration. While the state pushed for a contract that would have cut workers’ pay, Gov. Quinn himself criticized state employees as “overpaid.” In the end, workers prevailed, winning modest wage increases and a promise from the administration to work on awarding raises from the previous agreement that had been delayed.

In fact, the study’s authors found that had Quinn gotten his way, the state’s economy would have suffered. Manzo was quoted in The Pantagraph addressing this point:

"So it turns out that state workers have quite the economic impact on the Illinois economy. That means if you were to cut state spending, which could lead to trimming the state workforce, you’re also by extension going to slow the Illinois economy."

The study also found that public workers in Illinois are providing more than their fair share to the state’s economy. While they constitute 13 percent of the state’s total workforce, their effect on the economy amounts to 16 percent of the state’s gross domestic product – a contribution that will only be possible if state workers fight for and maintain a middle class standard of living.

Public workers in Illinois make these important contributions despite being overworked. As In These Times reports:

“Illinois has fewer public workers per capita than any state except Florida, and, according to the study, public workers in Illinois receive relatively modest pay – coming in slightly below the national average.”

The study also shows why efforts to make public workers carry the burden for Illinois’ pension funds aren’t justified. It found that “Illinois state employees are currently in the top quarter of states in paying into their retirement system while working but in the bottom quarter of states in receiving a proportionate share of their final income during retirement.”