IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/23348.html
   My bibliography  Save this paper

The job satisfaction-productivity nexus: A study using matched survey and register data

Author

Listed:
  • Böckerman, Petri
  • Ilmakunnas, Pekka

Abstract

This paper examines the role of job satisfaction in the determination of establishment-level productivity. The matched data contain both information on job satisfaction from the ECHP (European Community Household Panel) and information on establishment productivity from longitudinal register data that can be linked to the ECHP. The estimates for the effect of a one point increase in the establishment average level of employee job satisfaction, on a scale 1-6, on productivity vary depending on the specification of the model. The preferred estimate, based on the IV estimation that uses satisfaction with housing conditions as an instrument for job satisfaction, shows that the effect on value added per hours worked is ~20% in the manufacturing sector. The economic size of this effect is modest, because the observations are bunched towards the higher end of the satisfaction scale making it very difficult to increase the average level of job satisfaction in the establishment by one point.

Suggested Citation

  • Böckerman, Petri & Ilmakunnas, Pekka, 2010. "The job satisfaction-productivity nexus: A study using matched survey and register data," MPRA Paper 23348, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:23348
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/23348/1/MPRA_paper_23348.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrew Clark & Yannis Georgellis & Peter Sanfey, "undated". "Job Satisfaction, Wage changes and Quits: Evidence from Germany," Economics and Finance Discussion Papers 98-06, Economics and Finance Section, School of Social Sciences, Brunel University.
    2. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    3. Andrew J. Oswald & Eugenio Proto & Daniel Sgroi, 2015. "Happiness and Productivity," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 789-822.
    4. Jacques Mairesse & Nathalie Greenan, 1999. "Using Employee-Level Data in a Firm-Level Econometric Study," Contributions to Economic Analysis, in: The Creation and Analysis of Employer-Employee Matched Data, pages 489-512, Emerald Group Publishing Limited.
    5. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    6. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
    7. Sinikka Vanhala & Kaija Tuomi, 2006. "HRM, Company Performance and Employee Well-being," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 17(3), pages 241-255.
    8. Buhai, Sebastian & Cottini, Elena & Westergaard-Nielsen, Niels, 2008. "The impact of workplace conditions on firm performance," Working Papers 08-13, University of Aarhus, Aarhus School of Business, Department of Economics.
    9. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-141, May.
    10. M Patterson & P Warr & M West, 2004. "Organizational Climate and Company Productivity: the Role of Employee Affect and Employee Level," CEP Discussion Papers dp0626, Centre for Economic Performance, LSE.
    11. Daniel S. Hamermesh, 2004. "Subjective Outcomes in Economics," Southern Economic Journal, John Wiley & Sons, vol. 71(1), pages 1-11, July.
    12. Eero Lehto, 2007. "Regional Impact of Research and Development on Productivity," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 623-638.
    13. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    14. Andrew E. Clark, 1996. "Job Satisfaction in Britain," British Journal of Industrial Relations, London School of Economics, vol. 34(2), pages 189-217, June.
    15. Sinikka Vanhala & Kaija Tuomi, 2006. "HRM, Company Performance and Employee Well-being," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(3), pages 241-255.
    16. Green, Francis, 2010. "Well-being, job satisfaction and labour mobility," Labour Economics, Elsevier, vol. 17(6), pages 897-903, December.
    17. Daniel S. Hamermesh, 2004. "Subjective Outcomes in Economics," Southern Economic Journal, John Wiley & Sons, vol. 71(1), pages 2-11, July.
    18. John Zelenski & Steven Murphy & David Jenkins, 2008. "The Happy-Productive Worker Thesis Revisited," Journal of Happiness Studies, Springer, vol. 9(4), pages 521-537, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heather Antecol & Deborah Cobb-Clark, 2009. "Racial harassment, job satisfaction, and intentions to remain in the military," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 713-738, July.
    2. Semih Tumen & Tugba Zeydanli, 2016. "Social interactions in job satisfaction," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(3), pages 426-455, June.
    3. Lina Aldén & Mats Hammarstedt & Hanna Swahnberg, 2020. "Sexual Orientation and Job Satisfaction: Survey-Based Evidence from Sweden," Journal of Labor Research, Springer, vol. 41(1), pages 69-101, June.
    4. 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.
    5. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2011. "Job security and employee well-being: Evidence from matched survey and register data," Labour Economics, Elsevier, vol. 18(4), pages 547-554, August.
    6. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    7. Sarah Jewell & Pantelis Kazakis, 2021. "Migration patterns and job satisfaction: evidence from European doctorate holders," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 359-407, April.
    8. Thomas Cornelißen, 2009. "The Interaction of Job Satisfaction, Job Search, and Job Changes. An Empirical Investigation with German Panel Data," Journal of Happiness Studies, Springer, vol. 10(3), pages 367-384, June.
    9. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    10. Ricardo Pagán & Miguel Malo, 2009. "Job satisfaction and disability: lower expectations about jobs or a matter of health?," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(1), pages 51-74, March.
    11. Jewell, Sarah & Kazakis, Pantelis, 2017. "On the Role of Migration on the Satisfaction of European Researchers: Evidence from MORE2," MPRA Paper 86149, University Library of Munich, Germany, revised 11 Apr 2018.
    12. Michael Beckmann & Thomas Cornelissen & Bern Schauenberg, 2009. "Fixed-term employment, work organization and job satisfaction: Evidence from German individual-level data," Working papers 2009/09, Faculty of Business and Economics - University of Basel.
    13. Hammarstedt, Mats & Aldén, Lina & Swahnberg, Hanna, 2018. "(I Can’t Get No) Job Satisfaction? Differences by Sexual Orientation in Sweden," Working Paper Series 1241, Research Institute of Industrial Economics.
    14. Andrew E. Clark, 2018. "Four Decades of the Economics of Happiness: Where Next?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 245-269, June.
    15. Hugo Benítez-Silva & Debra Dwyer & Wayne-Roy Gayle & Thomas Muench, 2008. "Expectations in micro data: rationality revisited," Empirical Economics, Springer, vol. 34(2), pages 381-416, March.
    16. Michael A. Shields & Melanie E. Ward, "undated". "Improving Nurse Retention in the British National Health Service: The Impact of Job Satisfaction on Intentions to Quit," Discussion Papers in Public Sector Economics 00/3, Division of Economics, School of Business, University of Leicester.
    17. Benitez-Silva, Hugo & Dwyer, Debra S., 2006. "Expectation formation of older married couples and the rational expectations hypothesis," Labour Economics, Elsevier, vol. 13(2), pages 191-218, April.
    18. Anne C. Gielen & Jan C. Ours, 2014. "Unhappiness and Job Finding," Economica, London School of Economics and Political Science, vol. 81(323), pages 544-565, July.
    19. Antecol, Heather & Cobb-Clark, Deborah, 2006. "The sexual harassment of female active-duty personnel: Effects on job satisfaction and intentions to remain in the military," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 55-80, September.
    20. Andrew J. Oswald & Eugenio Proto & Daniel Sgroi, 2015. "Happiness and Productivity," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 789-822.

    More about this item

    Keywords

    Job satisfaction; employee well-being; productivity; performance;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:23348. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.