Abstract
This study examines the desire to change jobs among employees in the public versus the private sector and the impact of employees' self-assessment of their job fit. It was found that 8% of all employees wish to change their jobs, with the rate is 30% lower in the public sector compared to the private sector. About one-third of the gap between the sectors can be explained by differences in observable employee characteristics and the higher subjective job fit in the public sector, which reduces the desire to leave. The lower desire to change jobs in the public sector, compared to the private sector, is particularly notable among employees who report that their education or training does not match their job. The estimate for the public sector, after controlling for various factors, likely reflects the different employment conditions, including job stability and fewer working hours, but it may also indicate unobserved differences between employees. A two-stage estimation designed to address this supports the hypothesis that the relationship between working in the public sector and the lower desire to leave, even when the employee believes they are not well-suited to their job, is causal. However, its macroeconomic impact is not substantial.