Public versus private sector: Do workers’ behave differently?

Abstract

It has been widely assumed in the literature that public sector organization operates in a different way compared to private sector organization. This paper intends to contribute to develop further this issue by investigating whether the relationship between worker efforts differs significantly both in the public and in the private sector. By drawing on data from the Monthly Employment Survey (PME), Brazil 2003–2012, and proxies for worker effort (unpaid overtime work and absences), it was observed, initially, significant differences between worker’s profiles depending on the sector they are employed. In turn, the estimation results of the dynamic panel models confirm that the level of worker effort alters according to their switches from one sector to another in the labor market. Briefly, public sector workers do not tend to do unpaid overtime work comparable to those in private sector, and they are more likely to be absent at work.

Keywords

• Sector switch
• Work effort
• Labor market
• Public sector
• Private sector