Introduction to the Themed collection: Public sector employment relations in turbulent times

We introduce a themed collection of articles examining how the public sector has responded to, and been impacted by, the COVID-19 crisis. Although the pandemic has affected the roles, functions, economies, governance and structures of public sectors, this themed collection focuses on public sector employment relations. Authors examine significant areas which have been subject to accelerated change stemming from the pandemic. Building on decades of public sector reform, these changes impact public sector enterprise bargaining, terms and conditions of employment, working arrangements and practices, and the relationship between public servants and their employer. The articles in this collection provide important insights into the longer-term influences of the COVID-19 pandemic for public sector workforces. The collection also raises questions around whether the positive lessons from this crisis can be sustained to help manage serious crises in the future, or whether the public sector will slip back into a state of unpreparedness. JEL Codes: J45, J5, J81

Pandemic effects on public service employment in Australia

The COVID-19 pandemic is sending shockwaves through communities and economies, and public servants have risen to the novel policy challenges in uncharted waters. This crisis comes on top of considerable turmoil for public services in recent decades, with public management reforms followed by the global financial crisis (GFC) leading to considerable change to public sector employment relations and a deprivileging of public servants. The research adopts the lens of the ‘public service bargain’ to examine the effects of the pandemic across Australian public services. How did Australian public service jurisdictions approach public employment in 2020, across senior and other cohorts of employees? How did this pandemic response compare to each jurisdictions’ response to the GFC a decade earlier? The research also reflects more broadly of the impact on public sector employment relations and to what extent pandemic responses have altered concepts of the diminished public service bargain or the notion of governments as model employers? JEL Codes J45

Public Sector Employment and Voter Turnout

Does working in the public rather than the private sector have a causal effect on electoral participation? Extant evidence using cross-sectional survey data remains unpersuasive due to data limitations and concerns posed by preference-based job selection. We address these challenges using population-wide individual-level register data on voter turnout covering four Norwegian local and national elections between 2013 and 2019. We identify causal effects by tracking the same individuals over time during (a) shifts between private- and public-sector employment, (b) relocations between municipalities, and (c) shifts into retirement. We find that local public-sector employees display 1–3 percentage points higher voter turnout compared with private-sector employees. These effects arise particularly when working in their residential municipality, but they largely dissipate upon retirement.

Public Service Quality under Permanent and Fixed-term Employment Contracts: Evidence from Physician Supply of Primary Care

A key feature of public sector employment in many countries is rigid civil service rules that effectively limit manager autonomy over hiring, firing, promotion, and compensation decisions. We study the effect of these rules by comparing the quality of healthcare provided by physicians employed as civil servants with physicians hired in the same facilities on fixed-term contracts that give managers more autonomy over personnel decisions. Using data from interactions with unannounced standardized patients, we find that fixed-term contracts motivate greater diagnostic effort without increasing unnecessary treatments. Lower effort among civil servants appears due to both weaker career and wage incentives.