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Fringe benefits and job satisfaction

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  • Benjamin Artz

Abstract

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.

Suggested Citation

  • Benjamin Artz, 2010. "Fringe benefits and job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 626-644, September.
  • Handle: RePEc:eme:ijmpps:v:31:y:2010:i:6:p:626-644
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    References listed on IDEAS

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    1. 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.
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    Citations

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    Cited by:

    1. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," SOEPpapers on Multidisciplinary Panel Data Research 883, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," Discussion Papers of DIW Berlin 1630, DIW Berlin, German Institute for Economic Research.
    3. Verena Lauber & Sarah Reiter & Johanna Storck, 2015. "Familienfreundlichkeit in Unternehmen - Status Quo in Deutschland und Forschungsstand," DIW Roundup: Politik im Fokus 77, DIW Berlin, German Institute for Economic Research.
    4. Scott Adams & Benjamin Artz, 2015. "Health Insurance, Familial Responsibilities and Job Satisfaction," Journal of Family and Economic Issues, Springer, vol. 36(1), pages 143-153, March.
    5. Artz, Benjamin & Taengnoi, Sarinda, 2016. "Do women prefer female bosses?," Labour Economics, Elsevier, vol. 42(C), pages 194-202.

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