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Does Low Job Satisfaction Lead to Job Mobility?

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Author Info

  • Kristensen, Nicolai

    ()
    (KORA - Danish Institute for Local and Regional Government Research)

  • Westergård-Nielsen, Niels C.

    ()
    (Copenhagen Business School)

Abstract

This paper seeks to analyse the role of job satisfaction and actual job change behaviour. The analysis is based on the European Community Household Panel (ECHP) data for Danish families 1994-2000. The results show that inclusion of job satisfaction, which is a subjective measure, does improve the ability to predict actual quit behaviour: Low overall job satisfaction significantly increases the probability of quit. Various job satisfaction domains are ranked according to their ability to predict quits. Satisfaction with Type of Work is found to be the most important job characteristic while satisfaction with Job Security is found to be insignificant. These results hold across age, gender and education sub-groups and are opposed to results for UK, where job security is found to be the most important job domain. This discrepancy between UK and Denmark might be due to differences in unemployment insurance benefits and indicates that there are “invisible” benefits inherited in the welfare state insurance system because employees in Denmark don’t worry about job security.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1026.

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Length: 22 pages
Date of creation: Feb 2004
Date of revision:
Publication status: published as 'Job satisfaction and quits – Which job characteristics matters most?' in: Nationaløkonomisk Tidsskrift / Danish Economic Journal, 2006, 144 (2), 230-248
Handle: RePEc:iza:izadps:dp1026

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Related research

Keywords: quits; personnel economics; job satisfaction;

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References

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  1. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
  2. Frederiksen, Anders & Westergård-Nielsen, Niels C., 2002. "Where Did They Go?," IZA Discussion Papers 414, Institute for the Study of Labor (IZA).
  3. Ward, Melanie E & Sloane, Peter J, 2000. "Non-pecuniary Advantages versus Pecuniary Disadvantages; Job Satisfaction among Male and Female Academics in Scottish Universities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(3), pages 273-303, August.
  4. Richard B. Freeman, 1978. "Job Satisfaction as an Economic Variable," NBER Working Papers 0225, National Bureau of Economic Research, Inc.
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