The Impact of Job Security Rule Change on U.S. Federal Employee Organizational Commitment

Abstract

This study estimates the impact of different job security rule change on federal civilian employees’ organizational commitment through looking recent Department of Homeland Security (DHS)’s at-will employment system using difference-in- differences (DID) method. Result shows that overall effect of introduction of new job security rule in DHS is a decrease of approximately 6% in organizational commitment, which is a substantial, negative effect on the organizational commitment in the DHS. In addition, the results of this study also suggest that the modified and ended job security rule may have been boosted organizational commitment among DHS workers by as much as 6 to 12 percentage points. Taken together, the results of my difference in differences (DID) analysis for 2004 new job security rule, 2005 modified rule, and 2007 ended job security rule suggest that workers organizational commitment in DHS were more favorable after the modified or ended job security rule than what would have been the case, present the introduction of new job security rule. Additionally, the results, adopting at-will employment practices is negatively associated with organizational commitment, suggesting that managing workplace attitude and behaviors should become a concern in at-will employment practices.