Low-pay higher pay and job satisfaction within the European Union: empirical evidence from fourteen countries
AbstractWe examine differences in job satisfaction between low- and higher-paid workers within the European Union (EU). To do so The European Community Household Panel Data covering the period 1994-2001 is used. Then we test for differences in reported job satisfaction between low- and higher-paid workers. We also explain the existence of differences in the determinants of job satisfaction between these two types of workers and across countries. Our results indicate that low paid workers report a lower level of job satisfaction when compared with their higher paid counterparts in most countries, except in the UK. This supports the idea that low-wage employment in these countries mainly comprises low quality. The results also indicate that gap in average job satisfaction between low- and higher-paid workers is markedly wider in the Southern European countries than in the rest of EU. Finally, there are significant differences in the determinants of job satisfaction across countries. It seems then that a homogeneous policy may be inappropriate to increase satisfaction, and hence labour productivity, in the EU as a whole. Hence, an improvement of the quality of the jobs in the EU may require different policies. In particular, in some countries such as the United Kingdom removing low employment, namely through regulation, may worsen the workers’ well-being, although in other cases such a policy may lead to a totally different outcome.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1560405.
Length: 26 pages
Date of creation: Apr 2005
Date of revision:
Job satisfaction; job quality; low-wage employment;
Other versions of this item:
- Diaz-Serrano, Luis & Vieira, José A. Cabral, 2005. "Low Pay, Higher Pay and Job Satisfaction within the European Union: Empirical Evidence from Fourteen Countries," IZA Discussion Papers 1558, Institute for the Study of Labor (IZA).
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-29 (All new papers)
- NEP-EEC-2005-09-29 (European Economics)
- NEP-LAB-2005-09-29 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard B. Freeman, 1978.
"Job Satisfaction as an Economic Variable,"
NBER Working Papers
0225, National Bureau of Economic Research, Inc.
- Jeffrey M Wooldridge, 2002.
"Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity,"
CeMMAP working papers
CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
- Shields, Michael A & Price, Stephen Wheatley, 2002.
"Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession,"
London School of Economics and Political Science, vol. 69(274), pages 295-26, May.
- Michael A. Shields & Stephen Wheatley Price, . "Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession," Discussion Papers in Public Sector Economics 01/2, Department of Economics, University of Leicester.
- Shields, Michael A. & Wheatley Price, Stephen, 2000. "Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession," IZA Discussion Papers 164, Institute for the Study of Labor (IZA).
- George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
- Lorenzo Cappellari, 1999. "Low-Wage Mobility in the Italian Labour Market," The Warwick Economics Research Paper Series (TWERPS) 531, University of Warwick, Department of Economics.
- Clark, Andrew E., 1997.
"Job satisfaction and gender: Why are women so happy at work?,"
Elsevier, vol. 4(4), pages 341-372, December.
- Andrew Clark, . "Job Satisfaction and Gender. Why are Women so Happy at Work?," Economics Discussion Papers 415, University of Essex, Department of Economics.
- Clark, A.E., 1995. "Job Satisfaction and Gender: Why Are Women so Happy at Work?," DELTA Working Papers 95-10, DELTA (Ecole normale supérieure).
- Clark, Andrew E. & Oswald, Andrew J., 1994.
"Satisfaction and comparison income,"
CEPREMAP Working Papers (Couverture Orange)
- Rannia Leontaridi & Peter Sloane, 2001. "Measuring The Quality Of Jobs," LoWER Working Papers wp7, AIAS, Amsterdam Institute for Advanced Labour Studies.
- Richard Jones & Peter Sloane, 2007. "Low Pay, Higher Pay and Job Satisfaction in Wales," Spatial Economic Analysis, Taylor and Francis Journals, vol. 2(2), pages 197-214.
- Stewart, M.B. & Swaffield, J.K., 1997.
"Low Pay Dynamics and Transition Probabilities,"
The Warwick Economics Research Paper Series (TWERPS)
495, University of Warwick, Department of Economics.
- P. J. Sloane & H. Williams, 2000. "Job Satisfaction, Comparison Earnings, and Gender," LABOUR, CEIS, vol. 14(3), pages 473-502, 09.
- Guillaume R. Frechette, 2001. "Random-effects ordered probit," Stata Technical Bulletin, StataCorp LP, vol. 10(59).
- Miller, Paul W, 1990. "Trade Unions and Job Satisfaction," Australian Economic Papers, Wiley Blackwell, vol. 29(55), pages 226-48, December.
- 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.
- Carola Grün & Wolfgang Hauser & Thomas Rhein, 2010. "Is Any Job Better than No Job? Life Satisfaction and Re-employment," Journal of Labor Research, Springer, vol. 31(3), pages 285-306, September.
- Hussain Naeem Author_Email: & Ilham Sentosa & Hadi Nejatian & Shishi Kumar Piaralal, 2011. "Job Satisfaction Of Civil Servants (An Evidence From The Republic Of Maldives)," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-256, Conference Master Resources.
- Grün, Carola & Hauser, Wolfgang & Rhein, Thomas, 2008. "Finding a job: Consequences for life satisfaction and interactions with job quality," IAB Discussion Paper 200824, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Pouliakas, Konstantinos & Theodossiou, Ioannis, 2005. "Socio-Economic Differences in the Satisfaction of High-Pay and Low-Pay Jobs in Europe," MPRA Paper 16733, University Library of Munich, Germany, revised 10 Aug 2009.
- Paulo Aguiar Do Monte, 2011. "Job Dissatisfaction And Labour Turnover:Evidence From Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 135, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Skalli, Ali & Theodossiou, Ioannis & Vasileiou, Efi, 2008. "Jobs as Lancaster goods: Facets of job satisfaction and overall job satisfaction," The Journal of Socio-Economics, Elsevier, vol. 37(5), pages 1906-1920, October.
- E. Schokkaert & E. Verhofstadt & L. Van Ootegem, 2009. "Measuring job quality and job satisfaction," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/620, Ghent University, Faculty of Economics and Business Administration.
- Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 13-01, ISCTE-IUL, Business Research Unit (BRU-IUL).
- Heinemann, Friedrich & Hennighausen, Tanja & Moessinger, Marc-Daniel, 2011. "Intrinsic work motivation and pension reform acceptance," ZEW Discussion Papers 11-045, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- B. Defloor & L. Van Ootegem & E. Verhofstadt, 2010. "A distance function approach to school-leavers’ efficiency in the school-to-work transition," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 10/682, Ghent University, Faculty of Economics and Business Administration.
- Ricardo Pagán & Miguel Malo, 2009. "Job satisfaction and disability: lower expectations about jobs or a matter of health?," Spanish Economic Review, Springer, vol. 11(1), pages 51-74, March.
- Sara Depedri & Ermanno Tortia & Maurizio Carpita, 2010. "Incentives, job satisfaction and performance: empirical evidence in italian social enterprises," Euricse Working Papers 1012, Euricse (European Research Institute on Cooperative and Social Enterprises).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.