Job satisfaction, working conditions and job-expectations

Ambra Poggi

No 73, LABORatorio R. Revelli Working Papers Series from LABORatorio R. Revelli, Centre for Employment Studies

Abstract: According to Sen’s capability approach, objective working conditions can be seen as functionings (i.e. things experienced by the individuals). The corresponding capability set includes all sets of alternatives working conditions existing in the society for a given kind of job. Observing the existing capability set of working conditions, individuals formulate expectations about their own working conditions. These expectations might create biases in the realistic perceptions of job satisfaction. Our aim is to study the determinants of worker perceptions of quality of work in EU Countries. In particular, we shed light on the complex relationship that exists between job satisfaction, objective working conditions and workers expectations. First, we determine which objective working conditions impact on the level of job satisfaction. Second, we test the existence, and the signs, of biases in the realistic perception of job satisfaction due to the existence of expectations. Third, we test if expectations are affected by the working conditions actually experienced in the job place. From a technically point of view, we estimate a two-tiered stochastic frontier model. We find that expectations biases exist. High expectations have stronger effects in reducing job satisfaction than low expectation in increasing job expectations. Finally, expectations are affected by the working conditions actually experienced by the workers.

Keywords: Job satisfaction; working conditions; expectations; two-tiered stochastic frontier model. (search for similar items in EconPapers)
JEL-codes: I31 J28 J81 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-hap and nep-lab
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Citations: View citations in EconPapers (5)

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