Job Satisfaction and Regime Change: Evidence from a Natural Experiment

Abstract

ABSTRACTLittle is known about the effects of regime change on government workers’ job satisfaction. Conventional theories of work satisfaction have identified various individual or organizational antecedents of public employees’ well-being in many different contexts. In this study, we add an additional level of analysis to the study of job satisfaction. The German reunification in 1990 constitutes a natural experiment where public employees’ institutional work environment changed dramatically. Using data from the German Socio-Economic Panel, we show that, after the reunification, East German public employees who stayed in their jobs experienced a “satisfaction shock” by substantially decreasing their levels of job satisfaction. This finding is in line with what has been labelled as “survivor syndrome” in the general management literature. We also find that, after three years’ time, differences in satisfaction levels between East and West Germans reverted to pre-reunion levels. These findings are robust to various model specifications and alternative estimators. The theoretical and practical implications of our findings are discussed.