Richard Rider

Richard Rider
San Diego, California, USA
August 24
San Diego Tax Fighters
Biography of Richard Rider (Updated July, 2011) San Diego, CA 92131 E-mail: * AGE: 66 * EDUCATION: B.A. Economics, University of North Carolina, 1968 * MILITARY SERVICE: Commander, Supply Corps, U. S. Naval Reserve, retired after 26 years (four years active, the rest in the reserve). ** OCCUPATION: Retired stockbroker and financial planner. Lifetime member of the International Association of Financial Planners. Former business owner. * AFFILIATION: • Chairman, San Diego Tax Fighters • National Taxpayers Union • Howard Jarvis Taxpayers Association • San Diego County Taxpayers Association * POLITICAL ACTIVITIES: • Successfully sued the county of San Diego (Rider vs. County of San Diego) to force a rollback of an illegal 1/2-cent jails sales tax, a precedent that saved California taxpayers over fourteen billion dollars, including $3.5 billion for San Diego taxpayers. • Actively supported a variety of tax-cutting ballot initiatives including Proposition 13. Has written ballot arguments against numerous county and state tax increase initiatives. • County co-chair of both California term limit initiatives (Prop 140 and Prop 164). • Libertarian Party candidate for governor in 1994. • Candidate for the 3rd District County Supervisor in 1992 (third place among six candidates with about 20% of the vote). • 1993 – appointed to (and then elected chair of) the San Diego County Social Services Advisory Board. • 1996 – appointed as a Commissioner on the California Constitution Revision Commission by state Assembly Speaker Kurt Pringle. • Has been involved in legal actions against City of San Diego to force a public vote on issuing bonds for Qualcomm stadium expansion, convention center, baseball ballpark and other projects. • 2005 – Unsuccessful candidate for Mayor of San Diego, though his reform ideas have since taken hold. • 2007 – Columnist for NORTH COUNTY TIMES and SAN DIEGO DAILY TRANSCRIPT • 2009 - The Howard Jarvis Taxpayers Association's "California Tax Fighter of the Year" * FAMILY: Married. Wife, Diane, is a retired public high school teacher. Two sons, ages 32 and 27.

JULY 29, 2011 9:33PM

Estimating the Value of Public Sector Job Security

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Estimating the Value of Public Sector Job Security

Posted: 28 Jul 2011 08:13 PM PDT

AEI economist Andrew Biggs and Heritage Foundation Policy Analyst Jason Richwine have co-authored a series of articles on private vs. public compensation, for example see their WSJ articles "The Public Worker Gravy Train" and "The Government Pay Bonus," and a longer more technical working paper "Comparing Federal and Private Sector Compensation."   

From the abstract of the working paper (emphasis added):

"Public sector compensation has come under increased scrutiny from politicians and the media, but comprehensive technical comparisons of federal and private compensation have been largely absent from the discussion. Drawing from the academic literature and using the most recent government data, this report measures the generosity of federal salaries, benefits, and job security. Compared to similar private sector workers, we estimate that federal workers receive a salary premium of 14 percent, a benefits premium of 63 percent, and extra job security worth 17 percent of pay. Together, these generate an overall federal compensation premium of approximately 61 percent."

In a post today on The Enterprise Blog, Andrew Biggs writes:

"In our work on public sector pay, Jason Richwine and I have attempted to put a dollar value on the greater job security enjoyed by government employees, which acts as a free insurance policy against losing your job. Estimating the value of job security from the data is tough, however, for technical reasons outlined in our working paper on federal pay. Instead, we use an economic model, calibrated with a variety of data, to arrive at an estimate. Our baseline result was that job security for federal government employees was equivalent to a 1.5% to 3% increase in pay."

Andrew then points to a recent CD post on the market for private job loss insurance, which allows him to estimate the "implicit value of public sector job security" based on differences in market-based insurance premiums by occupation:

"I compared salaries between public and private sector workers’ net of supplemental unemployment insurance premiums sufficient to protect against all loss of income during unemployment. The difference in salaries indicates the job security premium paid in the public sector. The answer I found was around 2.4 percent, which was right in line with our baseline results. Given that total compensation for a typical federal employee is well over $100,000, even this baseline 2.4 percent job security premium is worth several thousand dollars. When you add that it protects a job paying a wage and benefits premium, the value of public sector job security is far higher."

Mark Perry: It's interesting that the empirical evidence from market-based insurance premiums for unemployment supports the estimates from a more theoretic, economic model developed by Andrew Biggs and Jason Richwine.  
NOTE:  The above item is from Economics Professor Mark Perry's Carpe Diem blog, a daily email I strongly recommend to my readers. 

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