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Do job disamenities raise wages or ruin job satisfaction?

Author

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  • Petri Böckerman
  • Pekka Ilmakunnas

Abstract

Purpose - The objective of this paper is to analyse the role of adverse working conditions in the determination of individual wages and job satisfaction in the Finnish labour market. Design/methodology/approach - The paper uses estimation of econometric models for wages and job satisfaction scores by using the Quality of Work Life Survey of Statistics Finland. Findings - The paper finds that adverse working conditions have a very minor role in the determination of individual wages. In contrast, adverse working conditions substantially decrease the level of job satisfaction and the perception of fairness of pay at the workplace. This evidence speaks against the existence of compensating wage differentials, but is consistent with the view that the Finnish labour market functions in a non‐competitive fashion. Practical implications - Provides useful information for improvement of working conditions. Originality/value - Very few papers have analysed the data sets that include, besides wages and job satisfaction scores, detailed information on several different aspects of self‐reported working conditions at the workplace, not just conditions typical of some occupations or industries.

Suggested Citation

  • Petri Böckerman & Pekka Ilmakunnas, 2006. "Do job disamenities raise wages or ruin job satisfaction?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 27(3), pages 290-302, April.
    • Handle: RePEc:eme:ijmpps:01437720610672185
    DOI: 10.1108/01437720610672185
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    Cited by:

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    2. Aysit Tansel & Şaziye Gazîoğlu, 2014. "Management-employee relations, firm size and job satisfaction," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1260-1275, October.
    3. Nikolaos Georgantzis & Efi Vasileiou, 2014. "Are Dangerous Jobs Paid Better? European Evidence," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 163-192, Emerald Group Publishing Limited.
    4. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    5. Petri Böckerman & Pekka Ilmakunnas, 2004. "Job Disamenities, Job Satisfaction and on-the-Job Search: Is There a Nexus?," Working Papers 208, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    6. Thomas Cornelißen, 2009. "The Interaction of Job Satisfaction, Job Search, and Job Changes. An Empirical Investigation with German Panel Data," Journal of Happiness Studies, Springer, vol. 10(3), pages 367-384, June.
    7. Johansson, Edvard, 2004. "Job Satisfaction in Finland - Some results from the European Community Household Panel 1996-2001," Discussion Papers 958, The Research Institute of the Finnish Economy.
    8. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2011. "Job security and employee well-being: Evidence from matched survey and register data," Labour Economics, Elsevier, vol. 18(4), pages 547-554, August.
    9. Ferreira, Susana & Martinez-de-Morentin, Sara & Erro-Garcés, Amaya, 2024. "Measuring Job Risks When Hedonic Wage Models Do Not Do the Job," IZA Discussion Papers 16716, Institute of Labor Economics (IZA).
    10. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, vol. 38(9), pages 1297-1314, September.
    11. Böckerman, Petri & Ilmakunnas, Pekka, 2006. "Interaction of job disamenities, job satisfaction, and sickness absences: Evidence from a representative sample of Finnish workers," MPRA Paper 1800, University Library of Munich, Germany.
    12. repec:dau:papers:123456789/4294 is not listed on IDEAS
    13. Ambra Poggi, 2007. "Do Satisfactory Working Conditions Contribute to Explaining Earning Differentials in Italy? A Panel Data Approach," LABOUR, CEIS, vol. 21(4‐5), pages 713-733, December.
    14. Patrice Laroche, 2016. "A Meta-Analysis of the Union–Job Satisfaction Relationship," British Journal of Industrial Relations, London School of Economics, vol. 54(4), pages 709-741, December.
    15. Böckerman, Petri & Ilmakunnas, Pekka & Jokisaari, Markku & Vuori, Jukka, 2008. "Who stay unwillingly in a job?," MPRA Paper 11066, University Library of Munich, Germany.
    16. Olena Nizalova, 2014. "Inequality in Total Returns to Work in Ukraine: Taking A Closer Look at Workplace (Dis)amenities," Discussion Papers 52, Kyiv School of Economics.
    17. Aysit Tansel & Saziye Gazîoglu, 2014. "Management-employee relations, firm size and job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 35(8), pages 1260-1275, October.
    18. Ndamsa Dickson Thomas & Baye Mendjo Francis & Epo Boniface Ngah, 2013. "Responsiveness of Private Sector Household Income to Employment Vulnerability in Cameroon," EuroEconomica, Danubius University of Galati, issue 1(32), pages 153-177, May.
    19. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2009. "Creative destruction and employee well-being," MPRA Paper 15447, University Library of Munich, Germany.

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    More about this item

    Keywords

    Pay differentials; Job satisfaction; Conditions of employment;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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