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An Analysis of the Determinants of Job Satisfaction when Individuals’ Baseline Satisfaction Levels May Differ

Author

Listed:
  • Anna Cristina D’Addio

    (Institute of Economics, University of Copenhagen)

  • Tor Eriksson

    (Institute of Local Government Studies, Copenhagen, Denmark)

  • Paul Frijters

    (Institute of Local Government Studies, Copenhagen, Denmark)

Abstract

A growing literature seeks to explain differences in individuals’ self-reported satisfaction with their jobs. Most of the accumulated evidence so far has, however, been based on cross-sectional data and when panel data have been used, individual unobserved heterogeneity has been modelled following the random effects approach, namely using the ordered probit model with random effects. This paper makes use of longitudinal data for Denmark, taken from the waves 1995-1999 of the European Community Household Panel, and estimates fixed effects ordered logit models using the estimation methods proposed by Ferrer-i-Carbonel and Frijters (2004) and Das and Van Soest (1999). For comparison and testing purposes a random effects ordered probit is also estimated. Estimations are carried out separately on the samples of men and women for individuals’ overall satisfaction with the jobs they hold. We find that using the fixed effects approach (that clearly rejects the random effects specification), considerably reduces the number of key explanatory variables. In addition to wages, good health and being a public sector employee are particularly important in explaining individual differences in job satisfaction. Moreover, the impact of being employed on a temporary contracts or working in the public sector differs between the genders.

Suggested Citation

  • Anna Cristina D’Addio & Tor Eriksson & Paul Frijters, 2003. "An Analysis of the Determinants of Job Satisfaction when Individuals’ Baseline Satisfaction Levels May Differ," CAM Working Papers 2003-16, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    • Handle: RePEc:kud:kuieca:2003_16
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    References listed on IDEAS

    as
    1. Arnaud Chevalier & Reamonn Lydon, 2002. "Estimates of the Effect of Wages on Job Satisfaction," CEP Discussion Papers dp0531, Centre for Economic Performance, LSE.
    2. Jens Bonke & Martin Browning, 2003. "The Distribution of Well-Being and Income within the Household," CAM Working Papers 2003-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    3. Nicoletti, Cheti & Peracchi, Franco, 2002. "A cross-country comparison of survey nonparticipation in the ECHP -ISER working paper-," ISER Working Paper Series 2002-32, Institute for Social and Economic Research.
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    More about this item

    Keywords

    job satisfaction; fixed effects ordered logit model; random effects;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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