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The Life Satisfaction Approach to Environmental Valuation

  • Bruno S. Frey
  • Simon Luechinger
  • Alois Stutzer


    (University of Basel)

The present paper examines the joint effect of fixed-term employment and work organization on job satisfaction using individual-level data from the German Socio-Economic Panel GSOEP). Specifically, we analyze whether workers who are heterogeneous in terms of the type of working contract (fixed-term vs. permanent) do also differ with regard to job satisfaction, when they perform under comparable work organizational conditions. Such information would be quite valuable for employers, because they can learn about the responsiveness of heterogeneous workers to innovative work organizational practices. For this purpose, we at first estimate a linear fixed effects model, thereby controlling for unobserved time-constant characteristics. In a second step, we account for potential remaining endogeneity by combining the fixed effects approach with a two-stage estimation strategy. Our empirical results show that in terms of job satisfaction fixed-term workers and their permanent counterparts respond differently to a number of organizational practices including task diversity, employee involvement, social relations at work, general working conditions, and career prospects. The results may be used by employers to improve their concept of diversity management and specifically the job design of heterogeneous workers. �

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Paper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2009/08.

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Date of creation: 2009
Date of revision:
Handle: RePEc:bsl:wpaper:2009/08
Contact details of provider: Postal: Peter-Merian-Weg 6, Postfach, CH-4002 Basel
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