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The Job Satisfaction-Life Satisfaction Relationship Revisited: Using the Lewbel Estimation Technique to Estimate Causal Effects Using Cross-Sectional Data

Author

Listed:
  • Vinod Mishra
  • Ingrid Nielsen
  • Russell Smyth
  • Alex Newman

Abstract

This paper uses a novel identification strategy proposed by Lewbel (2012, J. Bus. Econ. Stat.) to illustrate how causation between job satisfaction and life satisfaction can be established with cross-sectional data. In addition to examining the relationship between composite job satisfaction and life satisfaction, we consider the relationship between life satisfaction and different facets of job satisfaction. We find evidence of bidirectional causality between job satisfaction and life satisfaction and mixed evidence of causation between life satisfaction and different facets of job satisfaction.

Suggested Citation

  • Vinod Mishra & Ingrid Nielsen & Russell Smyth & Alex Newman, 2014. "The Job Satisfaction-Life Satisfaction Relationship Revisited: Using the Lewbel Estimation Technique to Estimate Causal Effects Using Cross-Sectional Data," Monash Economics Working Papers 26-14, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2014-26
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    References listed on IDEAS

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    2. Ingrid Nielsen & Russell Smyth & Qingguo Zhai, 2010. "Subjective Well-Being of China’s Off-Farm Migrants," Journal of Happiness Studies, Springer, vol. 11(3), pages 315-333, June.
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    5. Ingrid Nielsen & Olga Paritski & Russell Smyth, 2010. "Subjective Well-Being of Beijing Taxi Drivers," Journal of Happiness Studies, Springer, vol. 11(6), pages 721-733, December.
    6. Judge, Timothy A. & Hulin, Charles L., 1993. "Job Satisfaction as a Reflection of Disposition: A Multiple Source Causal Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 56(3), pages 388-421, December.
    7. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
    8. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    9. Raj Echambadi & Benjamin Campbell & Rajshree Agarwal, 2006. "Encouraging Best Practice in Quantitative Management Research: An Incomplete List of Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 43(8), pages 1801-1820, December.
    10. Herman Aguinis & Jeffrey R. Edwards, 2014. "Methodological Wishes for the Next Decade and How to Make Wishes Come True," Journal of Management Studies, Wiley Blackwell, vol. 51(1), pages 143-174, January.
    11. Alex Michalos & Julie Orlando, 2006. "Quality of Life of Some Under-Represented Survey Respondents: Youth, Aboriginals and Unemployed," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 79(2), pages 191-213, November.
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    Cited by:

    1. Wenshu Gao & Russell Smyth, 2015. "Education expansion and returns to schooling in urban China, 2001–2010: evidence from three waves of the China Urban Labor Survey," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(2), pages 178-201, April.
    2. Michael Effah Asamoah & Imhotep Paul Alagidede, 2023. "Foreign direct investment, real sector growth and financial development," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 626-643, January.
    3. Tominc Polona & Šebjan Urban & Širec Karin, 2017. "Perceived Gender Equality in Managerial Positions in Organizations," Organizacija, Sciendo, vol. 50(2), pages 132-149, May.
    4. Bannier, Christina E. & Schwarz, Milena, 2018. "Gender- and education-related effects of financial literacy and confidence on financial wealth," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 66-86.
    5. Prakash, Kushneel & Smyth, Russell, 2019. "‘The quintessential Chinese dream’? Homeownership and the subjective wellbeing of China's next generation," China Economic Review, Elsevier, vol. 58(C).
    6. Alexander Pacek & Benjamin Radcliff & Mark Brockway, 2019. "Well-Being and the Democratic State: How the Public Sector Promotes Human Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1147-1159, June.
    7. Asamoah, Michael Effah & Alagidede, Imhotep Paul & Adu, Frank, 2021. "Financial development, portfolio investments and the real economy in Africa," Economic Systems, Elsevier, vol. 45(4).
    8. Leomar Miano, 2020. "Job and Life Satisfaction of Teaching Personnel in a State University in Quezon Province," Technium Social Sciences Journal, Technium Science, vol. 8(1), pages 410-417, June.
    9. Le Moglie, Marco & Mencarini, Letizia & Rapallini, Chiara, 2015. "Is it just a matter of personality? On the role of subjective well-being in childbearing behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 453-475.
    10. Robert Davidson & Alexander Pacek & Benjamin Radcliff, 2021. "Public Sector Employment, Quality of Government, and Well-Being: A Global Analysis," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 24(3), pages 193-204, September.
    11. Ilhom Abdulloev, 2018. "Job dissatisfaction and migration: evidence from Tajikistan," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-27, December.
    12. Jailan M. El Demerdash & Ayman Saber, 2017. "Work-Family/Family-Work Interference of Back-AreaManagers: The Effect on Job and Life Satisfaction," Tourism Research Institute, Journal of Tourism Research, vol. 17(1), pages 26-37, June.
    13. Zahra Batool & Hamid Hasan & Ghulam Mustafa Sajid, 2020. "Does Job-Satisfaction Cause Life-Satisfaction? New Evidence Using Lewbel Methodology," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 357-376.
    14. Cheng, Zhiming & Smyth, Russell, 2015. "Sex and happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 26-32.
    15. Valeria Micheletto & Margherita Zito & Massimo Bustreo & Giorgio Gabrielli & Riccardo Circi & Vincenzo Russo, 2022. "The Impact of Optimism and Internal Locus of Control on Workers’ Well-Being, A Multi-Group Model Analysis before and during the COVID-19 Pandemic," Social Sciences, MDPI, vol. 11(12), pages 1-18, November.

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    Keywords

    Job satisfaction; life satisfaction; causality.;
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