Labour demand and supply of labour. In this

Labour economics seeks to understand the functioning anddynamics of the markets for wage labour. Therefore, wage labour is defined as delivery ofservices by person for payment. Wagelabour is the socioeconomic relationship between a worker andan employer,where the worker sells his or her labour power under a formal or informal employmentcontract.

These transactionsusually occur in a labour market where wages are market determined. A labour market isthe place where workers and employees interact with each other. In the labourmarket, employers compete to hire the best, and the workers compete for thebest satisfy job. A labour market in an economy functions with demand andsupply of labour.

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In this market, labour demand is the firm’s demand for labourand supply is the worker’s supply of labour. The supply and demand of labour inthe market is influenced by changes in the bargaining power. The viewpoint thatthe entire economically active population (the employed plus the unemployed)are participants in the labor market has become widespread among domestic laboreconomists in recent years (Kotliar, 1998). In the past two decades, active labourmarket policies have been widely adopted in developed capitalist countries,especially OECD countries, to combat unemployment and economic inactivity  (Chris et al., 2013). Inthe mixed economic situation, both of the public sector and private sectorconduct in the labour market. Theprivate sector is the part of a country’s economic system that is run byindividuals and companies, rather than the government. Most private sector organizationsare run with the intention of making profit.

The segment of the economy undercontrol of the government is known as the public sector and also that portion of an economic system that iscontrolled by national, state or provincial, and local governments. privatesector is larger in free enterprise economies, such as the United States, inwhich the government imposes relatively few restrictions on businesses. Labourmoving is more comprehensive in understanding when comparing movement ofemployment one to another. Labours who work in privatesector attempt to move from the private sector to public sector or vice versa.

Sectorswitching is de?ned as when people move from the private to the public sectoror vice versa. (Bozeman and Ponomariov, 2009). Sector switching is of greatrelevance to our understanding of public and private differences (Bozemanandand Ponomariov, 2009). Which is an area with a lot of studies, but little consensuson ?ndings (Baarspuland and Wilderom, 2011). Most studies on sector switchinghave focused on the motives and consequences of switching from the private tothe public sector (Bozeman and Ponomariov, 2009; Su and Bozeman, 2009).

Thisresearch focus on to identify the movement of public sector to private sector. The thinking of switching from thepublic sector to the private sector then the usual considerations of pay, joblocation, the fit with career goals and the reputation of the potential employerare some of the issues that will be evaluating (Kotila, 1998).

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