This is yet another chapter in the on-going Cato propaganda campaign
over the myth that government workers are paid more than the private
sector. The reality is that it depends. Lower grade workers, those
without a college education, do earn more, especially when you take
benefits into account. But, they comprise less than 50% of the
workforce. The remaining 52% of the workforce are paid less in wages,
but do receive higher benefits, primarily because most of them enjoy
defined benefit retirement programs. Even considering total
compensation, however, those with a professional or doctorate degree
receive 18% less than those in comparable jobs in the private sector.
http://www.factcheck.org/2012/02/cbo-offers-its-two-cents-on-federal-pay/
The principal flaw in the Cato study is that they are comparing the
average earnings in the public sector with average earnings in the
private sector. There is a much higher percentage of workers with
college degrees in the federal government (52%, versus 33% in the total
work force).
https://www.census.gov/content/dam/Census/library/publications/2016/demo/p20-578.pdf
The Cato study is a prime example of using average figures to spin the
result that they want to support their political agenda.
I should add that state and local governments have an even higher
percentage of employees with college degrees or above and tend to be
older. That results in a distribution of wages that is skewed toward
the top end.