The economics of public sector employment

Our Dr Pedro Gomes has been researching public employment for nearly fifteen years. He shares why it is so important to understand how the public sector works and the key findings from his research.

Public employment is a significant consideration in any national economy. In developed countries, public employment makes up 15-30 percent of total employment and represents the large majority of government consumption. In the US, for example, the government spends 60 percent more on general government employees than on the purchase of intermediate goods and services.

The public sector also operates according to different rules than the rest of the economy, as governments do not face the same competitive forces, nor have the same objectives as private sector firms.

Considering that the public sector is responsible for delivering many key services in our society, from education to healthcare, it is essential to have a good understanding of how its employment operates. The recent COVID-19 pandemic has again put focus on the importance of having a modern public sector, with an employment force prepared to face difficult, unpredictable and unlikely crises, but its aftermath with high public debt, also puts emphasis on the costs of the public sector workforce.

Below are three of the key findings from my research into this area.

Governments hire disproportionately more educated workers

In the paper Public Employment Redux, my colleagues Pietro Garibaldi, Thepthida Sopraseuth and I explore the phenomenon whereby governments hire more educated workers than the private sector.

We noticed that governments hire very few workers with low qualifications. In the US, for example, one third of workers have a masters or a PhD qualification, and one third of these work for the government.  We documented empirical evidence for this education bias in the US, UK, France and Spain.

There are a few different explanations for this trend:

  • The government needs more educated workers to provide its highly technical goods and services, such as healthcare, education and the judicial system.
  • Higher educated workers take more of a wage penalty to work in the public sector, so are relatively less expensive to hire.
  • Public sector jobs that require low qualifications pay more than similar level jobs in the private sector, so they attract workers with more qualifications.

Within our model, we found that the technological skills needed for the public sector was the main driver of the disproportionate representation of educated workers, but that wage setting and excess underemployment explain 12-15 percent of the education bias.

Unlike other sectors, the government is able to set wages more freely, as the cost is financed from tax revenue. If the government chooses to pay very high wages, too many people will choose a skilled role in the public sector as their first choice. However, if wages are too low, too few workers will want to join the government.

In reality, a balance is needed, so the government can always attract the workers it needs, without leading to underemployment in the public sector.

Nepotism in hiring practices allows friends and family to ‘jump the queue’ for government roles

Public sector hires are often based on nepotism: Scopa (2009) found that the probability of working in the public sector is 44% higher for individuals whose parents also work in the public sector, while Colonnelli et al. (2020) found that politically connected individuals in Brazil enjoy easier access to public sector jobs.

In my research into this topic with Andri Chassamboulli, we suggest that workers can use their connections to find jobs in the public sector faster. We created a search and matching model with private and public sectors to test this theory.

Surprisingly, we encountered some positive side effects to nepotistic practices. Conditional on high public sector wages, our findings suggest that hiring through connections reduces unemployment, as people who do not have connections will instead find roles in the private sector. Conversely, if the government sets the optimal wage possible for the successful running of the public sector, nepotism is reduced.

We conclude, therefore, that nepotism is a symptom of a problem in the public sector, rather than the disease, and the problem is created when wages are set too high.

Women prefer working in the public sector

In most countries, the public sector hires disproportionately more women than men. My colleague Zoë Kuehn and I developed a model to try to make sense of this imbalance.

Our findings show that the gender imbalance in the public sector is driven by supply, meaning that women self-select to work in the public sector more than men. One explanation for this is that the type of job carried out by the government is coincidentally the type of work preferred by women, such as healthcare and education. However, even discounting these sectors, women’s public employment remains 20-25% higher than men.

This remaining imbalance can be explained by the different characteristics of public and private employment. The gender wage gap and working hours are both reduced in the public sector, making this an attractive choice for women who may be factoring family commitments alongside work opportunities in their choice of employment. Alongside reduced working hours, the public sector offers additional benefits such as more sick days, flexible hours and employer-provided childcare, ensuring an overall better work-life balance in the public sector.

 

Further Information:

 

Share
. Reply . Category: Business Economics and Informatics . Tags: , , , , , , , , , , ,

Eyes in the back of their heads?

Is educational neuroscience all it’s cracked up to be? In a keynote speech at the London Festival of Learning, Professor Michael Thomas argues it can be used to provide simple techniques to benefit teaching and learning, and that in future machine learning could even give teachers eyes in the backs of their heads.

I could perhaps have been forgiven for viewing with some trepidation the invitation to address a gathering of artificial intelligence researchers at this week’s London Festival of Learning. At their last conference, they told me, they’d discussed my field – educational neuroscience – and come away sceptical.

They’d decided neuroscience was mainly good for dispelling myths – you know the kind of thing. Fish oil is the answer to all our problems. We all have different learning styles and should be taught accordingly. I’m not going to go into it again here, but if you want to know more you can visit my website.

The AI community sometimes sees education neuroscience mainly as a nice source of new algorithms – facial recognition, data mining and so on.

But I came to see this invitation as an opportunity. There are lots that are positive to say about neuroscience and what it can do for teachers – both now, and in the future.

Let’s start with now. There are already lots of basic neuroscience findings that can be translated into classroom practice. Already, research is helping us see the way particular characteristics of learning stem from how the brain works.

Here’s a simple one: we know the brain has to sleep consolidate knowledge. We know sleep is connected to the biology of the brain, and to the hippocampus, where episodic memories are stored. The hippocampus has a limited capacity – around 50,000 memories- and would fill up in about three months. During sleep, we gradually transfer these memories out of the hippocampus and store them more permanently. We extract key themes from memories to add to our existing knowledge. We firm up new skills we’ve learnt in the day. That’s why it’s important to sleep well, particularly when we’re learning a skill. This is a simple fact that can inform any teacher’s practice.

And here’s another: We forget some things and not others – why? Why might I forget the capital of Hungary, when I can’t forget that I’m frightened of spiders? We now know the answer – phobias involve the amygdala, a part of the brain which operates as a threat detector. It responds to emotional rather than factual experiences, and it doesn’t forget – that’s why we deal with phobias by gradual desensitisation, over-writing the ‘knowledge’ held in the amygdala. Factual learning is stored elsewhere, in the cortex, and operates more on a ‘use it or lose it’ basis. Again, teachers who know this can see and respond to the different ways that children learn and understand different things.

And nowadays, using neuroimaging techniques, we can actually see what’s going on in the brain when we’re doing certain tasks. So brain scans of people looking at pictures of faces, of animals, of tools and of buildings show different parts of the brain lighting up.

A figure representing human-rated similarity between pictures is available here:

The visual system is a hierarchy, with a sequence of higher levels of processing – so-called ‘deep’ neural networks. At the bottom level (an area called V1), brain activity responds to how similar the images are. It might respond similarly to a picture of a red car and a red flower, and differently to a picture of a blue car. Higher up the hierarchy, the brain activity responds to the different categories images are in (for example, in the inferior temporal region). Here, the patterns for a red car and a blue car will look more similar because both are cars, and different to the pattern for a red flower. This kind of hierarchical structure is now used in machine learning. It’s what Google’s software does – Is it a kitten or a puppy? Is John in this picture?

Again, teachers who know that different parts of the brain do different things can work with that knowledge. Brain science is already giving schools simple techniques – Paul Howard Jones at the University of Bristol has devised a simple three-step cycle to understand how the brain learns, based on what we now know: Engage; Build, Consolidate.

But there’s more – by bringing together neuroscience and artificial intelligence, we can actually build machines which can do things we can’t do. At a certain level, the machines become more accurate at doing things than humans are – and they can assimilate far greater amounts of information in a much shorter time.

I can foresee a day – and in research terms it isn’t far off – when teachers will be helped by virtual classroom assistants. They’ll use big data techniques – for example, collecting data anonymously from huge samples of pupils so that any teacher can see how his or her pupils’ progress matches up.

In future, teachers might wear smart glasses so they can receive real-time information – which child is having a problem learning a particular technique, and why? Is it because he’s struggling to overcome an apparent contradiction with something he already knows – or has his attention simply wandered? Just such a system has been showcased at the London Festival of Learning this week, in fact.

Of course, we have to think carefully about all this – particularly when it comes to data collection and privacy. But it’s possible that in future a machine will be able to read a child’s facial expression more accurately than a teacher can- is he anxious, puzzled, or just bored? Who’s being disruptive, who’s not applying certain rules in a group activity? Who’s a good leader?

This is not in any sense to replace teachers – it’s about giving them smarter information. Do you remember how you felt when your teacher turned to the blackboard with the words: ‘I’ve got eyes in the back of my head, you know?’ You didn’t believe it, did you? But in future, with a combination of neuroscience and computer science, we can make that fiction a reality.

This blog was first posted on the IOE London blog

Share
. Reply . Category: Science . Tags: , , ,

Examining the class system in British museum employment

Sam Evans, a PhD researcher at the Department for Organizational Psychology, is leading a series of focus groups which will ask participants to reveal what it takes to get in and get on in the museum sector, and how social class shapes career chances and experiences.

I’m interested in how inequality is reinforced in the workplace. Class, until recently, has been surprisingly absent from the debate. Research into diversity or equality, often overlooks class, as does occupational psychology in general. Part of the reason for this absence is that class is not a legally protected characteristic, like age or gender, but also it is argued that there has been a more fundamental ‘individualisation’ of Western culture.

Class identities have become more difficult to see or express in the workplace. Our careers are thus seen as our responsibility, and we don’t often think or talk about the structural inequalities that might frame this. However, there is research suggesting inequality at work is increasing, professions are becoming more not less exclusive, and social mobility is declining.

I want to explore these issues in-depth in my research project, The Museum of Them and Us; I am interested not just in how people are classed, but also occupations, roles and organisations. I am particularly interested in why some careers and types of work favour some groups of people and not others. We assume anyone can get in and get on, no matter how tough, given they have the right personal qualities. But what is this really like for people from different backgrounds? I have chosen to look at museums, partly because I am familiar with the field, but also because visiting and working in museums is described as middle class. But why is this, does this account for all types of work, and what does this mean for people who might not be from middle-class backgrounds.

I don’t have a fixed definition of the term ‘class’ (this is a subject that has been debated for 150 years and most researchers recognise there is no one single definition), but am using Pierre Bourdieu’s concept of capital of class. This involves looking at the types of economic, social or cultural capital that are valued within different types of museum work and how this relates to the type of capital people actually have, or are able to acquire. Cultural capital is particularly important as this relates to accent, dress, education and knowledge of particular types of culture, and is often highly valued in cultural work.

I have already conducted interviews with representative bodies, trade unions and membership bodies as well as analysing reports and websites to look at how ‘getting and getting on is described’. I have found that, as with other research, museum work has become less secure and more competitive. The onus seems to be on the person to develop themselves as specialist and professional, and yet also flexible and versatile. This potentially makes it riskier and less beneficial for anyone entering the field. Class was talked about but was often described as difficult to see or measure, and most diversity initiatives were aimed at developing the individual to fit the required ways of working, rather than look more closely at how ways of working might be creating inequalities.

With the focus groups and interviews, on the one hand, I am asking people to talk about their work – what it takes to get in and on, how this might have changed, how this might be different for different roles, are some roles held in higher esteem than others and why. On the other hand, I want to talk about social class – what does it mean to people, do they think class matters and if so, how? I am also asking people to contribute images or photos that they think represent their work.

Take part in the focus groups:

If you have worked or volunteered for a museum you can take part in a focus group or an interview. If people think that class has mattered to them in particular, I am also conducting private interviews.

Taking part is confidential, enjoyable and you will be helping the sector. To take part in a focus group or an interview and for further information, please contact me or visit my website.

Thursday 5 April
6PM – 7.30PM, Birkbeck Main Building, Room MAL 420, Malet Street, WC1E 7HZ  

Wednesday 11 April
6.30PM – 8PM, Birkbeck Main Building, Room MAL 420, Malet Street, WC1E 7HZ.

Thursday 26 April
6PM – 7.30PM, Museums Association Offices, 42 Clerkenwell Close, London, EC1R 0AZ

Friday 18 May
2.30PM – 4PM, Birmingham Museum and Art Gallery, Chamberlain Square, Birmingham B3 3DH

Wednesday 23 May
6PM – 7.30PM, Museums Association Offices, 42 Clerkenwell Close, London, EC1R 0AZ

Thursday 7 June
4PM – 5.30PM, Whitworth Gallery, The University of Manchester, Oxford Road, Manchester, M15 6ER

Thursday 14 June
5.30PM – 7PM, M Shed, Princes Wharf, Wapping Road, Bristol, BS1 4RN

Or schedule an interview:
If you think social class has mattered to you personally in your work or career then you can take in part in an individual interview, by email, Skype or face to face (depending on your location).

If you are interested in finding out more, please contact Sam directly.

About Sam:

I studied History originally, and then spent about 25 years working in marketing in the museum, cultural and public sectors. A lot of my work was really about understanding people and organisational cultures as much as ‘doing’ marketing, hence my interest in studying organisational psychology.  I started studying part time about 8 years ago, first obtaining a degree in psychology at OU, then moving on to the MSc in Organisational Psychology at Birkbeck.

About the same time as graduating, I was made redundant, which forced a decision – stick to the marketing “battleship” I knew, or jump onto the less stable “raft” of psychology. I had already met some PhD students and Dr Rebecca Whiting who became my supervisor, and thought I would really like to study for a PhD here. So when I was offered a studentship, I took the leap. It’s been one of the best decisions I’ve ever made!

From Dr Rebecca Whiting, a lecturer in the Department of Organisational Psychology and Sam’s PhD supervisor:

Sam brings a wealth of experience to her research from working in this sector and an intellectual rigour from her academic training. Class is a challenging concept to research because of the many and sometimes conflicting ways in which its conceptualised and measured.

Many definitions reflect the relationship between class and socio-economic and cultural status. However, since class is not a ‘protected characteristic’ under the Equality Act 2010, it doesn’t always appear as an aspect of diversity in organizations, so is ripe for critical investigation. Museums are key locations of our socio-cultural heritage but are an under-researched context in organizational and occupational research.

This highlights the importance of Sam’s research which brings together this topic and context to explore how class impacts on museum work.

Share
. Reply . Category: Business Economics and Informatics, Categories . Tags: , , , , , , , , ,

Physical fitness linked to lower cognitive impairment in dementia

Dr Eddy Davelaar from the Department of Psychological Sciences discusses the importance of physical fitness in offsetting cognitive impairment in adults with dementia.

 

Dementia and cognitive impairment cost the UK economy approximately £26 billion per year. The number of people with dementia in England and Wales has been projected to increase by 57% from 2016 to 2040, primarily because of extended life expectancy. Finding ways to slow its severity and progression could have life-changing effects for the 800,000 people estimated to be living with dementia in the UK.

With the increased incidence in dementia, people are interested to know whether it could be prevented through changes in their lifestyle, such as eating habits, exercise, and decreased environmental stress. Research does suggest that a healthy lifestyle lowers the risk of dementia. We were interested in physical fitness as one of the lifestyle factors. In our recent article published in Frontiers in Public Health, we asked the question of whether self-reported physical fitness is associated with cognitive, or thinking ability in people with dementia.

To assess this, we used a cross-sectional design with two groups. The first group was made up of 30 older individuals (aged 65+ years) with dementia, who were attending the Alzheimer’s café social events. Those people in the dementia group have lower cognitive performance than the 40 age-matched participants from our control group, who do not have dementia.

We tested everyone on a wide range of cognitive tests, such as verbal fluency, prospective memory, and clock drawing. We also administered a 15-item questionnaire on physical fitness, which asked about strength (eg. ability to lift things), balance, and aerobic conditioning (eg. taking a brisk walk or taking the stairs instead of lifts). Many studies have shown strong correlations between self-report and objective measures of physical fitness. In addition, this questionnaire is available to everyone for self-assessment.

Our findings showed that in the group of dementia patients, those with greater physical fitness also had a greater general cognitive ability. Even those patients with the best cognitive performance still performed worse than the healthy individuals, who did not show this link between physical and cognitive fitness. Thus, physical fitness seems to buffer dementia-related cognitive deterioration.

We ran a number of checks on the results and found that the association did not change when we controlled for the age of the participants, the number of years since dementia diagnosis, the type of dementia, or even whether the person used to be physically active when they were younger. The latter finding suggests that the current state of being physically fit and capable is key to observing this cognitive benefit.

There are at least two explanations for these findings. First, the cardiovascular hypothesis states that physical activity stimulates blood circulation in frontal-striatal circuits (neural pathways that connect frontal lobe regions with the basal ganglia that mediate motor, cognitive, and behavioural functions within the brain), that are critical in executive functioning, such as planning and reasoning.

A second hypothesis suggests that physical fitness measures, such as strength and balance, require efficient brain representations of motor plans. The processes by which these motor representations become more efficient also leads to enhanced cognitive representations. Both hypotheses underscore the expression, ‘what is good for the heart is good for the brain’.

We are currently in the process of addressing the question of whether physical fitness (using both self-report and objective measures) is associated with cognitive decline or cognitive impairment in the absence of dementia. This would assess whether greater physical fitness is associated with greater mental fitness in general, or with cognitive fitness specific in the context of dementia.

Future research could also extend this work using longitudinal study designs in order to address the question of whether a change in physical fitness is associated with a change in the risk of dementia, which has important implications for health policy and age-appropriate physical intervention programmes for both healthy individuals and dementia patients.

Read the original, peer-reviewed article: Increased Physical Fitness Is Associated with Higher Executive Functioning in People with Dementia (2017).

Share
. Reply . Category: Science . Tags: , , , , , , , , ,