The stereotype of low self-esteem public sector workers: True or false?

This thesis uses the data from the NLSY79 to study whether self-esteem has an effect on the probability of working in the public sector. Additionally, it is studied how the interaction between self-esteem and risk preference and political preference affects the probability of working in the public sector. No causal evidence is found for self-esteem on the probability of working in the public sector. Results do show that self-esteem is correlated with increased effects of risk preference on working in the public sector. Different probabilities of working in the public sector are also found for democrats and republicans. Again the difference in probability of working in the public sector caused by political preference increases as self-esteem grows.