Decomposing the effects of digitalization on workers’ job satisfaction

This paper provides novel results on the relative importance of multiple channels through which digitalization affects job satisfaction. Using part-time students and graduates of professional education and training colleges in Switzerland as a case study, we investigate the relative strength of ten different channels. We find that the association between digitalization and job satisfaction is positive on average. This relationship is mainly due to the increase in productivity and more interesting work. Heterogeneity analyses on subsets of workers suggest that the effect through increasing productivity is more beneficial for women, for older workers, for workers without an executive position, and for workers who did not study in technology-related fields. The effect through the interestingness of work is larger for males and for older workers. Our results further suggest that among the channels that decrease job satisfaction, increase of time pressure and worsening of work-life balance are much more important than the threat of losing one’s job. Both channels are more relevant for men, for older workers, and for workers whose field of study is technology-related.