Personnel Reform and the Federal Workforce

Alessandra Fenizia and Christos A. Makridis

No 12517, CESifo Working Paper Series from CESifo

Abstract: This paper examines the effects of the 2025 U.S. federal personnel reforms. Using a difference-in-differences design, we document a decline in federal employment, accompanied by lower engagement and job satisfaction, and higher burnout and job search activity. These latter effects fade over time and are not explained by selective attrition, suggesting that attitudinal deterioration did not translate into sustained labor market exit. Broader measures of subjective well-being also decline and remain depressed, indicating spillovers beyond the workplace. The estimated effects are heterogeneous by political affiliation, with Democrats and Independents responding strongly, while Republicans display no meaningful change.

Keywords: federal workforce; civil service reform; employee engagement; job satisfaction; public sector; Gallup Workforce Panel (search for similar items in EconPapers)
JEL-codes: C23 H83 J24 J28 J45 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-hrm
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