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The job satisfaction-productivity nexus: A study using matched survey and register data

Petri Böckerman () and Pekka Ilmakunnas ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the role of job satisfaction in the determination of establishment-level productivity. The matched data contain both information on job satisfaction from the ECHP (European Community Household Panel) and information on establishment productivity from longitudinal register data that can be linked to the ECHP. The estimates for the effect of a one point increase in the establishment average level of employee job satisfaction, on a scale 1-6, on productivity vary depending on the specification of the model. The preferred estimate, based on the IV estimation that uses satisfaction with housing conditions as an instrument for job satisfaction, shows that the effect on value added per hours worked is ~20% in the manufacturing sector. The economic size of this effect is modest, because the observations are bunched towards the higher end of the satisfaction scale making it very difficult to increase the average level of job satisfaction in the establishment by one point.

Keywords: Job satisfaction; employee well-being; productivity; performance (search for similar items in EconPapers)
JEL-codes: J28 D24 (search for similar items in EconPapers)
Date: 2010-06-17
New Economics Papers: this item is included in nep-eff and nep-lab
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Citations: View citations in EconPapers (27) Track citations by RSS feed

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Related works:
Journal Article: The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data (2012) Downloads
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