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An analysis of the determinants of job satisfaction when individuals' baseline satisfaction levels may differ

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Author Info
Anna Cristina D'Addio
Tor Eriksson
Paul Frijters

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Abstract

A growing literature seeks to explain differences in individuals' self-reported satisfaction with their jobs. The evidence so far has mainly been based on cross-sectional data and when panel data have been used, individual unobserved heterogeneity has been modelled as an ordered probit model with random effects. This article makes use of longitudinal data for Denmark, taken from the waves 1995-1999 of the European Community Household Panel, and estimates fixed effects ordered logit models using the estimation methods proposed by Ferrer-i-Carbonel and Frijters (2004) and Das and van Soest (1999). For comparison and testing purposes a random effects ordered probit is also estimated. Estimations are carried out separately on the samples of men and women for individuals' overall satisfaction with the jobs they hold. We find that using the fixed effects approach (that clearly rejects the random effects specification), considerably reduces the number of key explanatory variables. The impact of central economic factors is the same as in previous studies, though. Moreover, the determinants of job satisfaction differ considerably between the genders, in particular once individual fixed effects are allowed for.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 39 (2007)
Issue (Month): 19 ()
Pages: 2413-2423
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Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2413-2423

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  1. Mark Wooden & Diana Warren & Robert Drago, 2007. "Working Time Mismatch and Subjective Well-Being," Melbourne Institute Working Paper Series wp2007n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
    Other versions:
  2. Namkee Ahn & Juan Ramón García, . "Job Satisfaction in Europe," Working Papers 2004-16, FEDEA. [Downloadable!]
  3. repec:ese:iserwp: is not listed on IDEAS
  4. Edvard Johansson, 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. [Downloadable!]
  5. Russell Smyth & Qingguo Zhai & Xiaoxu Li, 2008. "Determinants Of Turnover Intentions Among Chinese Off Farm Migrants," Monash Economics Working Papers 03/08, Monash University, Department of Economics. [Downloadable!]
    Other versions:
  6. Ponzo, Michela, 2009. "On-the-job Search in Italian Labour Markets: An Empirical Analysis," MPRA Paper 15476, University Library of Munich, Germany. [Downloadable!]
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