Evaluation of the Effects of Education on Job Satisfaction: Independent Single-Equation vs. Structural Equation Models

Natalia Fabra () and Luis Vila Lladosa ()

International Advances in Economic Research, 2007, vol. 13, issue 2, pages 157-170

Abstract: Independent single-equation models and structural equation models are used to analyze both direct and indirect impacts of education length, and of the match between education and employment, on job satisfaction after controlling for individual-specific and job-specific attributes, including health status and wages. The main results show that: (1) education/job mismatches, both in level and domain, reduce utility from work irrespective of schooling years and other individual/job characteristics; (2) the effects of education on job satisfaction are mainly indirect effects transmitted though the influence of schooling on workers’ health status, wages and other observable job characteristics; and (3) neglecting the structure of covariance among the determinants of job satisfaction results in upward bias in the estimation of the direct effect of schooling length, and in downward bias in the estimates for the effects of other personal circumstances. Copyright International Atlantic Economic Society 2007

Keywords: Occupational effects of education; Education and job match; Structure of covariance; C10; J21; J30 (search for similar items in EconPapers)

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