The Federal Salary Council recently released the result of the government's annual pay comparison, which now shows federal workers allegedly underpaid by 35 percent compared to nonfederal workers in comparable jobs. Every year the federal government says its workers are underpaid, but that claim is becoming increasingly less believable.
Andrew Biggs and I detailed the methodological problems with the government's pay comparison in an op-ed published last month in the Washington Post. Among those problems is that it does not consider fringe benefits at all--an omission that seemed to get Larry Kudlow upset:
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