Are Public Sector Workers Different? Cross-European Evidence from Elderly Workers and Retirees

Abstract

We investigate whether public and private sector employees differ in terms of public service motivation using a representative sample of elderly workers from 12 European countries. We find that public sector workers, both those currently employed and those already retired, are significantly more prosocial; however, the difference in prosociality is explained by differences in the composition of the workforce across the two sectors, in terms of (former) workers’ education and occupation. We also investigate other dimensions and find no differences in terms of trust, while there is evidence of some differences in risk aversion, political preferences, life and job satisfaction.

Keywords: public sector, public service motivation, risk aversion, trust, life satisfaction, volunteering

JEL Classification: D640, H830, J450