How Radical Were Wisconsin’s Reforms?

One year ago, the state of Wisconsin adopted sweeping reforms that curbed collective bargaining rights among government workers, brought the state’s pension system into line, and empowered those workers to choose whether or not to pay union dues. A firestorm of opposition erupted among public sector unions. But despite all the rhetoric, the reforms did not spell doomsday for government workers.

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In a new paper, The Heritage Foundation’s Jason Richwine and the American Enterprise Institute’s Andrew Biggs analyzed Wisconsin’s reforms and their impacts on the state’s government workers. They found that even after requiring them to make larger contributions to their pensions and health benefits, Wisconsin government workers are still overpaid when compared to private-sector workers with similar levels of education and experience. Richwine explains:

Before the reforms, Wisconsin state workers received health benefits about 2.3 times as valuable and pension benefits about 5.7 times as valuable as what workers in large private firms receive. After the reforms, Wisconsin state workers still receive health benefits nearly twice as valuable and pension benefits more than 4.5 times as valuable.

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