What an (Un) Favorable Match: Public Sector Employment and the Reversal of the Overeducation-Job Satisfaction Penalty

Abstract

It is a well-documented phenomenon that individuals with higher education than required for their job report lower job satisfaction. However, whether this also applies to public sector employees remains unclear. The German case reveals a negative relationship between overeducation and job satisfaction in the private sector, which is reversed to positive for public sector employees. This holds robust across various empirical alterations. Furthermore, it is revealed that individuals with altruistic motives and a stronger-than-average family orientation drive this positive relationship.