On Selection into Public Civil Service
This paper investigates whether the institution of life time tenure for public sector employees affects the selection of workers into private and public sector occupation. Precisely, we argue that more generous employment protection for public sector employees may induce risk averse individuals to select into civil service employment even if they have a low intrinsic motivation and talent for this type of occupation. To empirically test for this effect, we exploit the natural experiment of the German reunification in 1990. While occupational choices in the Federal Republic of Germany (FRG) before 1990 may be affected by the described security motive, workers in the former German Democratic Republic (GDR) enjoyed an employment guarantee irrespective of their occupation. Using data from the German Socio-Economic Panel, we employ a difference-in-difference approach that takes absenteeism as a proxy for intrinsic worker motivation and productivity. The results suggest a significant selection effect: public sector employees who made their occupational choice in the FRG report more days of absence than the control group of civil servants who chose their occupation in the former GDR. This effect turns out to be robust against controlling for potential socio-economic and cultural differences between the groups.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Park End Street, Oxford OX1 1HP UK|
Phone: +44 (0)1865 288800
Fax: +44 (0)1865 288805
Web page: http://www.sbs.ox.ac.uk/ideas-impact/tax/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timothy Besley & Maitreesh Ghatak, 2005.
"Competition and Incentives with Motivated Agents,"
American Economic Review,
American Economic Association, vol. 95(3), pages 616-636, June.
- Tim Besley & Maitreesh Ghatak, 2005. "Competition and incentives with motivated agents," LSE Research Online Documents on Economics 928, London School of Economics and Political Science, LSE Library.
- Besley, Timothy J. & Ghatak, Maitreesh, 2004. "Competition and Incentives with Motivated Agents," CEPR Discussion Papers 4641, C.E.P.R. Discussion Papers.
- Timothy Besley & Maitreesh Ghatak, 2003. "Competition and incentives with motivated agents," LSE Research Online Documents on Economics 2202, London School of Economics and Political Science, LSE Library.
- Andrea Ichino & Regina T. Riphahn, 2001.
"The Effect of Employment Protection on Worker Effort. A Comparison of Absenteeism During and After Probation,"
CESifo Working Paper Series
596, CESifo Group Munich.
- Ichino, Andrea & Riphahn, Regina, 2003. "The Effect of Employment Protection on Worker Effort: A Comparison of Absenteeism During and After Probation," CEPR Discussion Papers 3847, C.E.P.R. Discussion Papers.
- Ichino, Andrea & Riphahn, Regina T., 2001. "The Effect of Employment Protection on Worker Effort: A Comparison of Absenteeism During and After Probation," IZA Discussion Papers 385, Institute for the Study of Labor (IZA).
- Ziebarth, Nicolas R. & Karlsson, Martin, 2010.
"A natural experiment on sick pay cuts, sickness absence, and labor costs,"
Journal of Public Economics,
Elsevier, vol. 94(11-12), pages 1108-1122, December.
- Nicolas R. Ziebarth & Martin Karlsson, 2009. "A Natural Experiment on Sick Pay Cuts, Sickness Absence, and Labor Costs," SOEPpapers on Multidisciplinary Panel Data Research 244, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Ziebarth N & Karlsson M, 2009. "A Natural Experiment on Sick Pay Cuts, Sickness Absence, and Labor Costs," Health, Econometrics and Data Group (HEDG) Working Papers 09/34, HEDG, c/o Department of Economics, University of York.
- Delfgaauw, Josse & Dur, Robert, 2007.
"Signaling and screening of workers' motivation,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 62(4), pages 605-624, April.
- Josse Delfgaauw & Robert A.J. Dur, 2002. "Signaling and Screening of Workers' Motivation," Tinbergen Institute Discussion Papers 02-050/3, Tinbergen Institute, revised 04 Mar 2005.
- Josse Delfgaauw & Robert Dur, 2003. "Signaling and Screening of Workers' motivation," CESifo Working Paper Series 1099, CESifo Group Munich.
- Francois, Patrick, 2000. "'Public service motivation' as an argument for government provision," Journal of Public Economics, Elsevier, vol. 78(3), pages 275-299, November.
- Riphahn, Regina T., 2004. "Employment protection and effort among German employees," Economics Letters, Elsevier, vol. 85(3), pages 353-357, December.
- Riphahn, Regina T. & Thalmaier, Anja, 1999. "Behavioral Effects of Probation Periods: An Analysis of Worker Absenteeism," IZA Discussion Papers 67, Institute for the Study of Labor (IZA).
- Sinan Aral & Erik Brynjolfsson & Marshall Van Alstyne, 2007. "Information, Technology and Information Worker Productivity: Task Level Evidence," NBER Working Papers 13172, National Bureau of Economic Research, Inc.
- Simon Burgess & Marisa Ratto, 2003. "The Role of Incentives in the Public Sector: Issues and Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 19(2), pages 285-300, Summer.
When requesting a correction, please mention this item's handle: RePEc:btx:wpaper:1109. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dongxian Guo)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.