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Public Sector Employees: Risk Averse and Altruistic?

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Author Info

  • Buurman, Margaretha

    ()
    (Erasmus University Rotterdam)

  • Dur, Robert

    ()
    (Erasmus University Rotterdam)

  • van den Bossche, Seth

    ()
    (TNO Work and Employment)

Abstract

We assess whether public sector employees have a stronger inclination to serve others and are more risk averse than employees in the private sector. A unique feature of our study is that we use revealed rather than stated preferences data. Respondents of a large-scale survey were offered a substantial reward and could choose between a widely redeemable gift certificate, a lottery ticket, or making a donation to a charity. Our analysis shows that public sector employees are significantly less likely to choose the risky option (lottery) and, at the start of their career, significantly more likely to choose the pro-social option (charity). However, when tenure increases, this difference in pro-social inclinations disappears and, later on, even reverses. Our results further suggest that quite a few public sector employees do not contribute to charity because they feel that they already contribute enough to society at work for too little pay.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4401.

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Length: 25 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4401

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Keywords: public service motivation; risk aversion; revealed preferences data;

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References

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  1. Pfeifer, Christian, 2008. "Risk Aversion and Sorting into Public Sector Employment," IZA Discussion Papers 3503, Institute for the Study of Labor (IZA).
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Are civil servants different?
    by Kevin Denny in Geary Behaviour Centre on 2009-10-12 09:19:00
  2. Public sector employees: Risk averse and (diminishingly) altruistic . . .
    by Nicholas Gruen in Club Troppo on 2009-10-12 09:57:15
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Dur, Robert & Zoutenbier, Robin, 2012. "Working for a Good Cause," IZA Discussion Papers 7058, Institute for the Study of Labor (IZA).
  2. Robert Dur & Robin Zoutenbier, 2013. "Intrinsic Motivations of Public Sector Employees: Evidence for Germany," SOEPpapers on Multidisciplinary Panel Data Research 623, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. repec:dgr:uvatin:2011168 is not listed on IDEAS
  4. Köllő, János, 2013. "A közszféra bérszintje és a magánszektorból átlépők szelekciója 1997-2008 között
    [Public-sector pay and flows from the private to the public sector]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 523-554.
  5. Fehrler, Sebastian & Kosfeld, Michael, 2012. "Pro-Social Missions and Worker Motivation: An Experimental Study," IZA Discussion Papers 6460, Institute for the Study of Labor (IZA).
  6. Tonin, Mirco & Vlassopoulos, Michael, 2014. "Are Public Sector Workers Different? Cross-European Evidence from Elderly Workers and Retirees," IZA Discussion Papers 8238, Institute for the Study of Labor (IZA).
  7. Andersson, Ola & Huysentruyt, Marieke & Miettinen, Topi & Stephan, Ute, 2014. "Person-Organization Fit and Incentives: A Causal Test," Working Paper Series 1010, Research Institute of Industrial Economics.
  8. repec:dgr:uvatin:2012135 is not listed on IDEAS
  9. Molnár, György & Kapitány, Zsuzsa, 2013. "Munkahely a közszférában. Biztonság és hivatás, a szubjektív szempontok szerepe
    [Public sector employment. Security and social mission- the role of subjective aspects]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 781-813.
  10. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2010. "Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?," Discussion Papers of DIW Berlin 1088, DIW Berlin, German Institute for Economic Research.
  11. Banuri, Sheheryar & Keefer, Philip, 2013. "Intrinsic motivation, effort and the call to public service," Policy Research Working Paper Series 6729, The World Bank.

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