Go to the Bureau of Labor Statistics Web site ( http://www.bls.gov ) and in sequence select “Databases and Tables” and “Series Report.” Then enter the following ID series numbers: CIU3010000000000I and CIU2010000000000I. Last, click on “All Years.”

This will retrieve indexes of total compensation of state and local government workers and private industry workers (100 5 Quarter 4, 2005). What is the percentage change in compensation for state and local government workers since Quarter 1, 2001? What is the percentage change in compensation for private industry workers since Quarter 1, 2001? What do these figures indicate has happened to the state and local government compensation differential since Quarter 1, 2001?