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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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  • Michael Demoussis & Nicholas Giannakopoulos, 2007. "Exploring Job Satisfaction in Private and Public Employment: Empirical Evidence from Greece," LABOUR, CEIS, vol. 21(2), pages 333-359, June.
  • Handle: RePEc:bla:labour:v:21:y:2007:i:2:p:333-359

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    Cited by:

    1. Antonio Di Paolo, 2012. "(Endogenous) occupational choices and job satisfaction among recent PhD recipients: evidence from Catalonia," Working Papers XREAP2012-21, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2012.
    2. David Madden, 2010. "Gender Differences in Mental Well-Being: a Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 99(1), pages 101-114, October.
    3. Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 13-01, ISCTE-IUL, Business Research Unit (BRU-IUL).
    4. Lasierra, Jose Manuel & Molina, Jose Alberto & Ortega, Raquel, 2015. "Job satisfaction and motivation of public employees in Spain," MPRA Paper 64950, University Library of Munich, Germany.
    5. Demoussis, Michael & Giannakopoulos, Nicholas, 2008. "Analysis of domain satisfactions: Evidence from a panel of Greek women," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1347-1362, August.
    6. Stefania Capecchi & Maria Iannario & Domenico Piccolo, 2012. "Modelling Job Satisfaction in AlmaLaurea Surveys," Working Papers 56, AlmaLaurea Inter-University Consortium.
    7. Tcherneva Pavlina R., 2012. "The Job Guarantee: Delivering the Benefits That Basic Income Only Promises – A Response to Guy Standing," Basic Income Studies, De Gruyter, vol. 7(2), pages 66-87, January.
    8. Zhuravleva, Tatiana, 2015. "Analysis of the Factors of Wages Differentiation in the Public and Private Sectors of the Russian Economy," Published Papers mn10, Russian Presidential Academy of National Economy and Public Administration.
    9. John Gibson, 2007. "The Public Sector Pay Premium and Compensating Differentials in the New Zealand Labour Market," Working Papers in Economics 07/20, University of Waikato.
    10. Robin Zoutenbier, 2014. "The Impact of Matching Mission Preferences on Well-being at Work," Tinbergen Institute Discussion Papers 14-036/I, Tinbergen Institute.
    11. Lea Sell & Bryan Cleal, 2011. "Job Satisfaction, Work Environment, and Rewards: Motivational Theory Revisited," LABOUR, CEIS, vol. 25(1), pages 1-23, March.
    12. Robin Zoutenbier, 2016. "The impact of matching mission preferences on well-being at work," Economics of Governance, Springer, vol. 17(3), pages 295-315, August.
    13. Natalia Danzer, 2013. "Job Satisfaction and Self-Selection into the Public or Private Sector: Evidence from a Natural Experiment," ifo Working Paper Series 169, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    14. repec:eur:ejesjr:94 is not listed on IDEAS
    15. Tubadji, Annie & Gheasi, Masood & Nijkamp, Peter, 2014. "Immigrants' 'Ability' and Welfare as a Function of Cultural Diversity: Effect of Cultural Capital at Individual and Local Level," IZA Discussion Papers 8460, Institute for the Study of Labor (IZA).

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