Fringe benefits and job satisfaction
Purpose – The paper seeks to empirically identify the theoretically ambiguous relationship between employer fringe benefit provision and worker job satisfaction. Design/methodology/approach – Using the five most recent waves of the National Longitudinal Survey of Youth, both pooled cross-section and fixed effects estimates explain the relationship between fringe benefits and job satisfaction. The potential endogenous relationship is also tested using a recursive bivariate probit procedure. Findings – Fringe benefits are significant and positive determinants of job satisfaction. The potential endogeneity between fringe benefits and job satisfaction is not shown in this dataset while controlling for fixed effects does not remove the significant impact of fringe benefits. Research limitations/implications – A limitation is the inability to control for total compensation within the estimations and control for wage changes as a result of fringe benefit provision. Practical implications – Higher levels of worker job satisfaction, potentially resulting from fringe benefit provisions, have been linked to important productivity measures such as lower quit rates and absenteeism. Originality/value – The paper is the first to study the relationship between fringe benefits and job satisfaction in detail while additionally testing for the endogeneity of the relationship and controlling for fixed effects.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (2010)
Issue (Month): 6 (September)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/ijm.htm Email:
References listed on IDEAS
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.:
- Jose Cabral Vieira & Antonio Menezes & Patricia Gabriel, 2005. "Low pay, higher pay and job quality: empirical evidence for Portugal," Applied Economics Letters, Taylor & Francis Journals, vol. 12(8), pages 505-511.
- Pouliakas, Konstantinos & Theodossiou, Ioannis, 2009. "Confronting Objections to Performance Pay: A Study of the Impact of Individual and Gain-sharing Incentives on the Job Satisfaction of British Employees," MPRA Paper 14244, University Library of Munich, Germany.
- G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
- Keith A. Bender & Susan M. Donohue & John S. Heywood, 2005. "Job satisfaction and gender segregation," Oxford Economic Papers, Oxford University Press, vol. 57(3), pages 479-496, July.
- Weiss, Andrew, 1984. "Determinants of Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 371-87, July.
- Woodbury, Stephen A, 1983. "Substitution between Wage and Nonwage Benefits," American Economic Review, American Economic Association, vol. 73(1), pages 166-82, March.
- Douglas Staiger & James H. Stock, 1994.
"Instrumental Variables Regression with Weak Instruments,"
NBER Technical Working Papers
0151, National Bureau of Economic Research, Inc.
- Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
- Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2005.
"Why so Unhappy? The Effects of Unionisation on Job Satisfaction,"
CESifo Working Paper Series
1419, CESifo Group Munich.
- Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2010. "Why So Unhappy? The Effects of Unionization on Job Satisfaction," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(3), pages 357-380, 06.
- Bryson, Alex & Cappellari, Lorenzo & Lucifora, Claudio, 2005. "Why So Unhappy? The Effects of Unionisation on Job Satisfaction," IZA Discussion Papers 1498, Institute for the Study of Labor (IZA).
- John S. Heywood & W. S. Siebert & Xiangdong Wei, 2002. "Worker Sorting and Job Satisfaction: The Case of Union and Government Jobs," ILR Review, Cornell University, ILR School, vol. 55(4), pages 595-609, July.
- Thomas Cornelißen & John S. Heywood & Uwe Jirjahn, 2008.
"Performance Pay, Risk Attitudes and Job Satisfaction,"
SOEPpapers on Multidisciplinary Panel Data Research
136, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Cornelissen, Thomas & Heywood, John S. & Jirjahn, Uwe, 2011. "Performance pay, risk attitudes and job satisfaction," Labour Economics, Elsevier, vol. 18(2), pages 229-239, April.
- W.D. McCausland & K. Pouliakas & I. Theodossiou, 2005.
"Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction,"
Labor and Demography
- McCausland, David & Pouliakas, Konstantinos & Theodossiou, Ioannis, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," MPRA Paper 14243, University Library of Munich, Germany.
- Keith A. Bender & John S. Heywood, 2006. "Job Satisfaction Of The Highly Educated: The Role Of Gender, Academic Tenure, And Earnings," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 253-279, 05.
- Richard B. Freeman, 1977.
"Job Satisfaction as an Economic Variable,"
NBER Working Papers
0225, National Bureau of Economic Research, Inc.
- Scott J. Adams, 2004. "Employer-provided Health Insurance and Job Change," Contemporary Economic Policy, Western Economic Association International, vol. 22(3), pages 357-369, 07.
- Andrew A. Luchak & Ian R. Gellatly, 2002. "How Pension Accrual Affects Job Satisfaction ," Journal of Labor Research, Transaction Publishers, vol. 23(1), pages 145-162, January.
- Chiara Monfardini & Rosalba Radice, 2008. "Testing Exogeneity in the Bivariate Probit Model: A Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 271-282, 04.
- Colin Green & John S. Heywood, 2008. "Does Performance Pay Increase Job Satisfaction?," Economica, London School of Economics and Political Science, vol. 75(300), pages 710-728, November.
- 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.
- Dale-Olsen, Harald, 2006. "Wages, fringe benefits and worker turnover," Labour Economics, Elsevier, vol. 13(1), pages 87-105, February.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004.
"How Important is Methodology for the estimates of the determinants of Happiness?,"
Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers 02-024/3, Tinbergen Institute.
When requesting a correction, please mention this item's handle: RePEc:eme:ijmpps:v:31:y:2010:i:6:p:626-644. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If references are entirely missing, you can add them using this form.