Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89862
Authors: 
Danzer, Natalia
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7644
Abstract: 
Are public sector jobs better than private sector jobs? To answer this question, this paper investigates observed differences in job satisfaction between public- and private-sector workers and disentangles the effect of worker sorting from the one caused by sector-specific job characteristics. A natural experiment – the massive privatization process in post-Soviet countries – allows correcting potential self-selection bias. Industry-specific privatization probabilities are assigned to workers based on unique individual-level survey information regarding pre-determined Soviet jobs during the 1980s. The results reveal a causal public-sector satisfaction premium and a negative selection of individuals into the public sector. Part of the public-private satisfaction gap can be explained by the different availability of fringe benefits in the two sectors.
Subjects: 
public sector
job satisfaction
self-selection
quasi-experiment
privatization
fringe benefits
JEL: 
J28
J45
J31
J32
Document Type: 
Working Paper

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