Public Sector Struggles to Attract Top Talent Due to Salary Gaps and Lack of Career Prospects
Workers choose public sector jobs over private sector jobs for reasons like work-life balance and job content, even though public sector jobs may offer lower salaries and fewer career opportunities. Highly educated workers prefer public sector jobs for their non-monetary benefits, while high-ability individuals are more likely to choose private sector jobs when public sector wages are less competitive. The study used data from a survey to show that high-ability individuals are drawn to private sector jobs with more dynamic career prospects.