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Job Satisfaction and Quits: Theory and Evidence from the German Socioeconomic Panel

Author

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  • Louis Lévy-Garboua
  • Claude Montmarquette
  • Véronique Simonnet

Abstract

We test the simple wealth maximization theory of quitting behavior on the German Socioeconomic Panel (1985-1993). We develop a new methodology to extract a consistent estimate of how the expected present value of one's job (including the non-pecuniary component) compares with outside opportunities in the future from subjective questions about job and job-related satisfactions. It is based on the interpretation of job satisfaction as an expression of the experienced preference for the present job against available alternatives. With this interpretation, the propensity to stay in the present job is simply related to the residual of a job satisfaction equation. Our tests validate this theory of job satisfaction and the economiceconomic theory of quits. We also find that the residual of a job satisfaction equation is a better predictor of quits than the overall level of satisfaction. Dans cette étude, en utilisant les données du Panel Socio-économique Allemand (1985-1993), nous soumettons à réfutation un modèle simple de maximisation de la richesse pour expliquer le fait de quitter une entreprise. ¸ l'aide de questions subjectives sur la satisfaction dans l'emploi et dans d'autres domaines (loisir, santé...)autres types de satisfaction, nous développons une méthodologie permettant de comparer la valeur présente attendue de son emploi (incluant une composante non-pécuniaire) aux opportunités d'emplois extérieures. L'approche retenue est basée sur l'idée que une interprétation dela satisfaction qui exprime une préférence expérimentée de l'emploi actuel contre les alternatives d'emplois disponibles. La propension à garder l'emploi occupé dans ce contexte dépend estsimplementreliée aux du résidus de l'équation de satisfaction dans l'emploi. Nos tests confirment cette théorie de la satisfaction et le modèle classique de mobilité volontairela théorie économique de quitter volontairement son emploi. Finalement, nous observons que le résidu de l'équation de satisfaction dans l'emploi offre une meilleure prédiction du départ volontaire que le niveau général de la satisfaction.

Suggested Citation

  • Louis Lévy-Garboua & Claude Montmarquette & Véronique Simonnet, 2001. "Job Satisfaction and Quits: Theory and Evidence from the German Socioeconomic Panel," CIRANO Working Papers 2001s-41, CIRANO.
    • Handle: RePEc:cir:cirwor:2001s-41
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    File URL: https://cirano.qc.ca/files/publications/2001s-41.pdf
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    References listed on IDEAS

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    Cited by:

    1. Levy-Garboua, Louis & Montmarquette, Claude, 2004. "Reported job satisfaction: what does it mean?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(2), pages 135-151, April.
    2. repec:lan:wpaper:1022 is not listed on IDEAS
    3. repec:lan:wpaper:1021 is not listed on IDEAS
    4. Andrew E. Clark, 2010. "Work and Well-Being," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(04), pages 17-21, January.
    5. Petri Böckerman & Pekka Ilmakunnas, 2004. "Job Disamenities, Job Satisfaction and on-the-Job Search: Is There a Nexus?," Working Papers 208, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    6. Burton, Jonathan & Laurie, Heather & Uhrig, S.C. Noah & Bryan, Mark L. & Desousa, Carol & Fumagalli, Laura & Jäckle, Annette & Knies, Gundi & Lynn, Peter & Nandi, Alita & Platt, Lucinda & Pudney, Ste, 2008. "Understanding Society. Some preliminary results from the Wave 1 Innovation Panel," Understanding Society Working Paper Series 2008-03, Understanding Society at the Institute for Social and Economic Research.
    7. repec:lan:wpaper:1084 is not listed on IDEAS
    8. Nguyen, Anh & Taylor, Jim & Bradley, Steve, 2003. "Relative pay and job satisfaction: some new evidence," MPRA Paper 1382, University Library of Munich, Germany.
    9. Andrew E. Clark, 2010. "Work and Well-Being," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(4), pages 17-21, 01.
    10. Carlos Gamero, 2009. "Job Satisfaction and On-the-Job Search: A Theoretical and Empirical Approach," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 6, pages 35-54.
    11. J Taylor & S Bradley & A N Nguyen, 2003. "Job autonomy and job satisfaction: new evidence," Working Papers 541528, Lancaster University Management School, Economics Department.
    12. Haile, Getinet Astatike, 2012. "Unhappy working with men? Workplace gender diversity and job-related well-being in Britain," Labour Economics, Elsevier, vol. 19(3), pages 329-350.

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    More about this item

    Keywords

    Voluntary quit; job satisfaction; wealth maximization model; Mobilité volontaire; satisfaction à l'emploi; modèle de maximisation de la richesse;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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