Here is an absolute first rate commentary by Daniel Borenstein dissecting the myth that public employees are compensated less than private sector folks. Included in this article is an amazing 100+ page study that should serve as a reference for many debates to come when having this discussion.
Borenstein’s article: http://bit.ly/mdCIFO
Full study: http://www.docstoc.com/docs/78892940/pensionstudy