Comparing Job Satisfaction among Public- and Private-Sector Employees

Abstract

Over the past several decades a number of empirical studies have demonstrated that job-satisfaction levels vary widely in the American labor force. The effect of age, tenure, salary, job type, job level, and work environment on an employee's job satisfaction has been extensively discussed. Studies have underscored the importance of identifying the determinants of employee job satisfaction by linking it to higher production and performance levels and to retention rates. Renewed interest in increasing performance levels in government should interest public administrators in identifying factors that foster worker satisfaction. However little empirical attention has been given to evaluating job-satisfaction levels among public-sector employees. And given that the reward system in the public sector systematically differs from that of the private sector (in terms of pay, benefits, and psychic value), it seems likely that studies of satisfaction levels among private-sector employees may not be applicable to public-sector employees. This paper utilizes analyses of the National Longitudinal Surveys of Youth (NLSY) to compare job-satisfaction levels among public-and private-sector employees. The NLSY is a representative sample of 12,686 men and women. Using this survey allows us to examine the actual work experiences, personal characteristics, and job-satisfaction levels of a selected set of public and private workers. If the factors that contribute to job satisfaction differ for public-and private-sector employees, as our results suggest they do, then such an analysis is long overdue.