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Exploring Job Satisfaction in Private and Public Employment: Empirical Evidence from Greece

  • Michael Demoussis
  • Nicholas Giannakopoulos

This paper analyses subjective job satisfaction (JS) responses by employees in the public and private sectors of the Greek labour market. Panel data covering the period 1995-2001 and a random effects ordered probit model are used for estimation purposes. The results of the econometric estimation show that a substantial JS differential exists between the two sectors, in every JS domain and always in favour of public employment. A typical ordered decomposition analysis indicates that about one-third of the difference in expected JS can be explained by differences in employee characteristics and two-thirds by unobserved sector-specific inbuilt features. The comparison of wage reductions, which a representative employee will be prepared to endure in order to avoid employment in the private sector, reveals that the regularity of working schedules is appreciated more than any other facet of JS. The obtained results enhance the existing apparatus for evaluating government policies in the labour market. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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Article provided by CEIS in its journal LABOUR.

Volume (Year): 21 (2007)
Issue (Month): 2 (06)
Pages: 333-359

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Handle: RePEc:bla:labour:v:21:y:2007:i:2:p:333-359
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