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Fringe benefits and job satisfaction

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  • Benjamin Artz

Abstract

Purpose - The paper seeks to empirically identify the theoretically ambiguous relationship between employer fringe benefit provision and worker job satisfaction. Design/methodology/approach - Using the five most recent waves of the National Longitudinal Survey of Youth, both pooled cross‐section and fixed effects estimates explain the relationship between fringe benefits and job satisfaction. The potential endogenous relationship is also tested using a recursive bivariate probit procedure. Findings - Fringe benefits are significant and positive determinants of job satisfaction. The potential endogeneity between fringe benefits and job satisfaction is not shown in this dataset while controlling for fixed effects does not remove the significant impact of fringe benefits. Research limitations/implications - A limitation is the inability to control for total compensation within the estimations and control for wage changes as a result of fringe benefit provision. Practical implications - Higher levels of worker job satisfaction, potentially resulting from fringe benefit provisions, have been linked to important productivity measures such as lower quit rates and absenteeism. Originality/value - The paper is the first to study the relationship between fringe benefits and job satisfaction in detail while additionally testing for the endogeneity of the relationship and controlling for fixed effects.

Suggested Citation

  • Benjamin Artz, 2010. "Fringe benefits and job satisfaction," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(6), pages 626-644, September.
    • Handle: RePEc:eme:ijmpps:v:31:y:2010:i:6:p:626-644
    DOI: 10.1108/01437721011073346
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    Cited by:

    1. Scott Adams & Benjamin Artz, 2015. "Health Insurance, Familial Responsibilities and Job Satisfaction," Journal of Family and Economic Issues, Springer, vol. 36(1), pages 143-153, March.
    2. Artz, Benjamin & Blanchflower, David G. & Bryson, Alex, 2022. "Unions increase job satisfaction in the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 173-188.
    3. Tri Ho Thanh & Ngoc-Tan Nguyen & Gregar Aleš & Pavelkova Drahomira, 2020. "Motivators and its impacts on job satisfaction in FDI companies - A case study of Eurowindow Vietnam," Management & Marketing, Sciendo, vol. 15(1), pages 109-124, March.
    4. Verena Lauber & Sarah Reiter & Johanna Storck, 2015. "Familienfreundlichkeit in Unternehmen - Status Quo in Deutschland und Forschungsstand," DIW Roundup: Politik im Fokus 77, DIW Berlin, German Institute for Economic Research.
    5. Rita Almeida & Pedro Carneiro, Renata Narita, 2013. "Producing Higher Quality Jobs: Enforcement of Mandated Benefits across Brazilian Cities between 1996-2007," Working Papers, Department of Economics 2013_22, University of São Paulo (FEA-USP).
    6. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," Discussion Papers of DIW Berlin 1630, DIW Berlin, German Institute for Economic Research.
    7. Mok, Wallace & Siddique, Zahra, 2011. "Racial and Ethnic Inequality in Employer Provided Fringe Benefits," IZA Discussion Papers 6255, Institute of Labor Economics (IZA).
    8. Rožman Maja & Treven Sonja & Čančer Vesna, 2017. "Motivation and Satisfaction of Employees in the Workplace," Business Systems Research, Sciendo, vol. 8(2), pages 14-25, September.
    9. Benjamin Artz & Ilker Kaya, 2014. "Job insecurity and job satisfaction in the United States: the case of public sector union workers," Industrial Relations Journal, Wiley Blackwell, vol. 45(2), pages 103-120, March.
    10. Salih Katircioglu & Huseyin Arasli & Mehmet Necati Cizreliogullari, 2022. "The Role of Ethical Leadership in Psychological Capital and Job Satisfaction of Immigrant Workers: Evidence From the Hotel Industry of Cyprus," SAGE Open, , vol. 12(3), pages 21582440211, July.
    11. Dilmaghani, Maryam, 2020. "Beauty perks: Physical appearance, earnings, and fringe benefits," Economics & Human Biology, Elsevier, vol. 38(C).
    12. Artz, Benjamin & Taengnoi, Sarinda, 2016. "Do women prefer female bosses?," Labour Economics, Elsevier, vol. 42(C), pages 194-202.
    13. Adolfo Cosme Fernández & Nuria Sánchez, 2020. "Once in the Public Sector, Do Differences in Job Satisfaction by Sex Disappear?," Hacienda Pública Española / Review of Public Economics, IEF, vol. 234(3), pages 75-104, September.
    14. Mohnen, Alwine & Mückenhausen, Verena & Toporova, Nevena & Kern, Maximilian, 2021. "Personalmanagement in Familienunternehmen: Recruiting, Arbeitsbedingungen, Weiterbildung," Studien, Stiftung Familienunternehmen / Foundation for Family Businesses, number 250040.
    15. Malgorzata Zajdel & Malgorzata Michalcewicz-Kaniowska & Bartosz Mickiewicz & Cosmina Toader, 2021. "Employee‘s Satisfaction within the Context of an Organization’s Development: Study Results," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 1-10.
    16. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," SOEPpapers on Multidisciplinary Panel Data Research 883, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Eva Gorgenyi-Hegyes & Robert Jeyakumar Nathan & Maria Fekete-Farkas, 2021. "Workplace Health Promotion, Employee Wellbeing and Loyalty during Covid-19 Pandemic—Large Scale Empirical Evidence from Hungary," Economies, MDPI, vol. 9(2), pages 1-22, April.

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    More about this item

    Keywords

    Job satisfaction; Benefits; Compensation; Employee attitudes;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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