<p>We use the World Values Survey data to study the relationship between subjective well-being and sector of employment in Arab countries. Our findings demonstrate a significant subjective well-being differential between public and private sector workers in the Arab World. Public sector workers are both more happy and more satisfied with their lives when compared to their private sector counterparts. Our study shows how public sector employment, which has historically been one of the main pillars of authoritarian Arab welfare states, not only shapes people’s preferences but also affect important social outcomes such as subjective well-being.</p>