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Evaluation of the Effects of Education on Job Satisfaction: Independent Single-Equation vs. Structural Equation Models

  • Eugenia Fabra Florit
  • Luis Vila Lladosa

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    Independent single-equation models and structural equation models are used to analyze both direct and indirect impacts of education length, and of the match between education and employment, on job satisfaction after controlling for individual-specific and job-specific attributes, including health status and wages. The main results show that: (1) education/job mismatches, both in level and domain, reduce utility from work irrespective of schooling years and other individual/job characteristics; (2) the effects of education on job satisfaction are mainly indirect effects transmitted though the influence of schooling on workers’ health status, wages and other observable job characteristics; and (3) neglecting the structure of covariance among the determinants of job satisfaction results in upward bias in the estimation of the direct effect of schooling length, and in downward bias in the estimates for the effects of other personal circumstances. Copyright International Atlantic Economic Society 2007

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    File URL: http://hdl.handle.net/10.1007/s11294-007-9081-3
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    Article provided by International Atlantic Economic Society in its journal International Advances in Economic Research.

    Volume (Year): 13 (2007)
    Issue (Month): 2 (May)
    Pages: 157-170

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    Handle: RePEc:kap:iaecre:v:13:y:2007:i:2:p:157-170
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    1. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc.
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    6. 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.
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    8. Hamermesh, Daniel S., 1999. "The Changing Distribution of Job Satisfaction," IZA Discussion Papers 42, Institute for the Study of Labor (IZA).
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