The Determinants of Countercyclical Job Satisfaction in the Public Sector

Abstract

Job satisfaction is sensitive to economic fluctuations; it rises during economic growth and falls in recessions. Job satisfaction also depends on relative comparisons. For workers less affected by business cycles-as is typical in the public sector-job satisfaction may thus be countercyclical due to comparisons with other sectors. Previous laboratory results confirm this countercyclical trend. This study reports new results from the German Socio-Economic Panel confirming the overall countercyclical job satisfaction trend but also revealing this trend is present only among men, not women. We consider three possible drivers of this gender gap. Competitiveness and pro-sociality differ between men and women both in the laboratory and in the field and plausibly interact with job satisfaction countercyclicality. Another potential explanation of countercyclicality is that men are more commonly the primary household providers. We conducted an experiment to explore these three channels. The experiment replicated the countercyclical job satisfaction trend. While identifying a significant gender gap in competitiveness, pro-sociality, and job satisfaction, we found no difference in job satisfaction cyclicality between men and women, nor a correlation with these traits. Our findings suggest that the fundamental gender differences we identified in the laboratory do not drive the gender differences observed in the survey data.