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Social interactions in job satisfaction

Author

Listed:
  • Semih Tumen
  • Tugba Zeydanli

Abstract

Purpose - – The purpose of this paper is to test empirically whether there exist spillover externalities in job satisfaction, i.e., to test whether individual-level job satisfaction is affected by the aggregate job satisfaction level in a certain labor market environment. Design/methodology/approach - – The authors use a linear-in-means model of social interactions in the empirical analysis. The authors develop an original strategy, motivated by the hierarchical models of social processes, to identify the parameters of interest. BHPS and WERS datasets are used to perform the estimations both at the establishment and local labor market levels. Findings - – The authors find that one standard deviation increase in aggregate job satisfaction leads to a 0.42 standard deviation increase in individual-level job satisfaction at the workplace level and a 0.15 standard deviation increase in individual-level job satisfaction at the local labor market level. In other words, the authors report that statistically significant job satisfaction spillovers exist both at the establishment level and local labor market level; and, the former being approximately three times larger than the latter. Originality/value - – First, this is the first paper in the literature estimating spillover effects in job satisfaction. Second, the authors show that the degree of these spillover externalities may change at different aggregation levels. Finally, motivated by the hierarchical models of social processes, the author develop an original econometric identification strategy.

Suggested Citation

  • Semih Tumen & Tugba Zeydanli, 2016. "Social interactions in job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 37(3), pages 426-455, June.
  • Handle: RePEc:eme:ijmpps:v:37:y:2016:i:3:p:426-455
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Semih Tumen & Tugba Zeydanli, 2015. "Is Happiness Contagious? Separating Spillover Externalities from the Group-Level Social Context," Journal of Happiness Studies, Springer, vol. 16(3), pages 719-744, June.
    2. Semih Tumen & Tugba Zeydanli, 2014. "Day-of-the-Week Effects in Subjective Well-Being: Does Selectivity Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(1), pages 139-162, October.
    3. repec:zbw:hkjalm:200711 is not listed on IDEAS

    More about this item

    Keywords

    Social interaction; Workplace; Labour market; Job satisfaction;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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