Job satisfaction as a determinant of employees’ optimal well-being in an instrumental variable approach

Emiliano Sironi ()
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Emiliano Sironi: Catholic University

Quality & Quantity: International Journal of Methodology, 2019, vol. 53, issue 4, No 3, 1742 pages

Abstract: Abstract The correlation between measures of a high level of job satisfaction and well-being is well documented in the literature; however, such a relationship may be potentially bidirectional. If an increase in job satisfaction affects optimal well-being, the reverse relationship can also be hypothesized. In addition, the relationship between job satisfaction and well-being may be polluted by the presence of omitted variables that can be correlated both with the satisfaction in the workplace and with a measure of optimal wellbeing. Using the sixth round of the European Social Survey, this paper utilizes an instrumental variable approach to isolate the effect of job satisfaction on optimal well-being variation that is independent of unobserved individual characteristics. After having controlled for the role of socio-economic profiles of interviewed individuals, our findings confirm a strong and significantly positive influence of job satisfaction on optimal well-being. The novelty of our analysis is twofold: firstly, we employ an instrumental variable approach to correct for endogeneity that might the effect of job satisfaction on well-being. Secondly, we use an innovative measure of optimal well-being, which we adopt as an outcome variable for measuring a multi-dimensional definition of well-being dealing with both hedonic and eudemonic streams.

Keywords: Job satisfaction; Optimal well-being; Instrumental variables (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11135-019-00835-3

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