Public private job satisfaction differential in Serbia: evidence from SILC data

Vladisavljević, Marko (2017) Public private job satisfaction differential in Serbia: evidence from SILC data. In: Education for entrepreneurial business and employment. Compass Publishing, Newton Abbot, pp. 186-206. ISBN 978-1-912009-84-8

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Abstract

Although the wage differences between the public and private sectors in Serbia are well researched, little is known on the differences in the overall quality of work between the sectors. In this paper we aim to fill this gap, by analysing the differences in job satisfaction between the public and private sector workers in Serbia, starting from a theoretical framework which views job satisfaction as an operationalization of total utility from work. To analyse the differences in job satisfaction we use nationally representative Survey on Income and Living Conditions (the SILC) data from 2013 and Blinder-Oaxaca decomposition method. The results show that public sector workers in Serbia, beside high public sector wage premium, also work in better working conditions, and have higher levels of job satisfaction. Although higher levels of job satisfaction can partially be accounted for by higher wages and better job characteristics of the public sector workers, a part of the gap in job satisfaction remains unexplained by the variables available in the SILC data. According to recent literature on job satisfaction these unexplained differences could be contributed to lower stress, higher job security and higher levels of intrinsic motivation of public sector workers. The results further support the notion of strong labour market duality in Serbia, which causes micro level labour market distortions.

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