Sector Switching in Good Times and in Bad: Are Public Sector Employees Less Likely to Change Sectors?

Abstract

With the retirement of the baby boomers looming and the growing number of opportunities to serve the public interest in broader ways than working in government, how dedicated are today’s public employees? This study examines the job sector changes of nonprofit and government employees compared with for-profit employees during both stable and unstable economic conditions. Sector switching within the government sector across federal, state, and local government employees is also examined. Findings show no sector differences during stable economic conditions, but illustrate federal government and nonprofit employees are more likely to move into the for-profit sector during times of economic instability. This study highlights the impact of tough labor market conditions on employment decisions. Nonprofits’ reliance on labor donations may no longer be sufficient, and public managers should tailor their recruitment and retention strategies to suit the level of government.