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Estimates of the Effect of Wages on Job Satisfaction Author info | Abstract | Publisher info | Download info | Related research | Statistics Arnaud Chevalier
Reamonn Lydon
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Empirical studies on job satisfaction have relied on two hypotheses: firstly, that wages are exogenous in a job satisfaction regression and secondly, that appropriate measures of relative wage can be inferred. In this paper we test both assumptions using two cohorts of UK university graduates. We find that controlling for endogeneity, the direct wage effect on job satisfaction doubles. Several variables relating to job match quality also impact on job satisfaction. Graduates who get good degrees report higher levels of job satisfaction, as do graduates who spend a significant amount of time in job search. Finally we show that future wage expectations and career aspirations have a significant effect on job satisfaction and provide better fit than some ad-hoc measures of relative wage.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
0531.
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Date of creation: May 2002Date of revision:
Handle: RePEc:cep:cepdps:0531Contact details of provider: Web page: http://cep.lse.ac.uk/pubs/
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