Workforce Entry Conditions and Job Satisfaction

This paper examines the relation between macroeconomic experiences and job satisfaction. Specifically, we analyze whether former work entry conditions have persistent effects on job satisfaction. Pooled Ordinary Least Squares method is applied to eighteen waves of the British Household Panel Survey. In order to check robustness of the established results, we also use Fixed Effect and Ordered Probit Estimation techniques. The results of relationship between work entry unemployment rate and job satisfaction is found negatively statistically significant at rho=.01 level in all methods. Even controlling for important factors on job satisfaction, such as industry and occupation differences, age, gender and income, the negative and significant effect of work entry conditions on job satisfaction continues to survive. The established results indicate that people who entered workforce when unemployment rate is high has less job satisfaction even in later ages compared to the ones who entered workforce when unemployment rate is lower.