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

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  • Eugenia Fabra Florit
  • Luis Vila Lladosa

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    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

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    Bibliographic Info

    Article provided by Springer in its journal International Advances in Economic Research.

    Volume (Year): 13 (2007)
    Issue (Month): 2 (May)
    Pages: 157-170

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    Handle: RePEc:kap:iaecre:v:13:y:2007:i:2:p:157-170

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    Web page: http://www.springerlink.com/link.asp?id=112112

    Related research

    Keywords: Occupational effects of education; Education and job match; Structure of covariance; C10; J21; J30;

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    References

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    1. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
    2. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
    3. David G. Blanchflower, 2000. "Self-Employment in OECD Countries," NBER Working Papers 7486, National Bureau of Economic Research, Inc.
    4. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
    5. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc.
    6. Daniel S. Hamermesh, 1999. "The Changing Distribution of Job Satisfaction," NBER Working Papers 7332, National Bureau of Economic Research, Inc.
    7. Robert Haveman & Mark Stone & Barbara Wolfe, 1989. "Market Work, Wages, and Men's Health," NBER Working Papers 3020, National Bureau of Economic Research, Inc.
    8. Andrew E. Clark and Andrew J. Oswald, . "Satisfaction and Comparison Income," Economics Discussion Papers 419, University of Essex, Department of Economics.
    9. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
    10. Robert H. Haveman & Barbara L. Wolfe, 1984. "Schooling and Economic Well-Being: The Role of Nonmarket Effects," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 377-407.
    11. B. Wolfe & S. Zuvekas, . "Nonmarket outcomes of schooling," Institute for Research on Poverty Discussion Papers 1065-95, University of Wisconsin Institute for Research on Poverty.
    12. Sousa-Poza, Alfonso & Sousa-Poza, Andres A, 2000. "Taking Another Look at the Gender/Job-Satisfaction Paradox," Kyklos, Wiley Blackwell, vol. 53(2), pages 135-52.
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    Cited by:
    1. Yakovlev, Pavel & Leguizamon, Susane, 2012. "Ignorance is not bliss: On the role of education in subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 806-815.
    2. Fabra, M. Eugenia & Camisón, Cesar, 2009. "Direct and indirect effects of education on job satisfaction: A structural equation model for the Spanish case," Economics of Education Review, Elsevier, vol. 28(5), pages 600-610, October.

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