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Human Capital, Matching and Job Satisfaction

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  • Tim Barmby
  • Alex Bryson
  • Barbara Eberth

Abstract

Using a model of wage determination developed by Stevens (2003) we offer an explanation of why tenure has a negative effect when entered in job satisfaction equations. If job satisfaction measures match quality, then the explanation follows from a model of the labour market in which workers accumulate specific human capital at the firm they work and the way in which this accumulation affects the way workers react to outside job opportunities.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1151.

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Date of creation: Jun 2012
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Handle: RePEc:cep:cepdps:dp1151

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: Job satisfaction; job match quality; human capital; job tenure;

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  1. Richard B. Freeman, 1978. "Job Satisfaction as an Economic Variable," NBER Working Papers 0225, National Bureau of Economic Research, Inc.
  2. Theodossiou, I. & Zangelidis, A., 2009. "Career prospects and tenure-job satisfaction profiles: Evidence from panel data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 648-657, August.
  3. Ferreira, Priscila & Taylor, Mark, 2011. "Measuring match quality using subjective data," Economics Letters, Elsevier, vol. 113(3), pages 304-306.
  4. Medoff, James L & Abraham, Katharine G, 1980. "Experience, Performance, and Earnings," The Quarterly Journal of Economics, MIT Press, vol. 95(4), pages 703-36, December.
  5. Margaret Stevens, 2003. "Earnings Functions, Specific Human Capital, and Job Matching: Tenure Bias Is Negative," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 783-806, October.
  6. George J. Borjas, 1979. "Job Satisfaction, Wages, and Unions," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 21-40.
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