Governments in the rich world are taking the knife to the budgets, pay and pensions of state employees. But where to cut? A study by Jan Brueckner and David Neumark of the University of California, Irvine, finds that within America there may be more flab in pub lic-sector pay packets in states like coastal California than wintry Wisconsin. The two economists work out the fraction of American workers' pay that cannot be explained by factors such as differences in education and experience.
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