Studies elsewhere in the world have been inconclusive on this question. Possibly because working for the government means different things in different locales.
Li He (et al.) decided to take a closer look at China. As they point out only the tobacco and electricity distribution industries are now entirely state run so private/public comparison in most other areas is possible.
Not only has an historic pay gap been closing in recent years between private and public sector employment but now, when certain benefits are taken into account, working in a government job can often mean a better overall financial deal than working for a private sector taskmaster.
The study is flawed in one obvious respect in that it’s based on 2016 industry data and a lot has happened since then, particularly in the private new-economy space (not much of it good for employees though).
Notwithstanding this limitation this is what the researchers found:
- People who work for SOEs are happier than those in the private sector.
- The gap is wider as you go up the age cohort.
- The difference is small in the East but rises the further West you go.
- Tiredness and a sense of work value seem to be the main issues.
In closing the researchers note that since China’s ‘reform and opening up’ the aggregate level of societal happiness has fallen. The rise of the private sector has had some role to play in this and the paper recommends private sector employers should consider adequate rest and the communication of purpose as factors which could help employees feel better about their lot.
‘996’ is therefore probably not the best way for the private sector to manage staff and make sure they get the best talent as they compete with what many regard as a better alternative, and in some cases, paying more.
You can access the paper in full via this link Are State-Owned Enterprise Employees Happier than Private Enterprise Employees?
Happy Sunday. Take it easy!