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The Magic of the New: How Job Changes Affect Job Satisfaction

  • Adrian Chadi

    ()

    (Institute for Labour Law and Industrial Relations in the EU, University of Trier)

  • Clemens Hetschko

    ()

    (School of Business and Economics, Freie Universitaet Berlin)

We investigate a crucial event for job satisfaction: changing the workplace. For representative German panel data, we show that the reason why the previous employment ended is strongly linked to the satisfaction with the new job. When workers initiate a change of employer, they experience relatively high job satisfaction, though only in the short-term. To test causality, we exploit plant closure as exogenous trigger of job switching and find no causal effect of job changes on job satisfaction. Our findings concern research on workers' well-being as well as labor market and human resource policies.

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Paper provided by Institute of Labour Law and Industrial Relations in the European Union (IAAEU) in its series IAAEU Discussion Papers with number 201405.

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Date of creation: May 2014
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Handle: RePEc:iaa:dpaper:201405
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  1. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2007. "The effect of job satisfaction on labor turnover by gender: An analysis for Switzerland," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 895-913, December.
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  6. Adrian Chadi, 2013. "The Role of Interviewer Encounters in Panel Responses on Life Satisfaction," IAAEU Discussion Papers 201311, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  7. Gielen, Anne C., 2008. "Repeated Job Quits: Stepping Stones or Learning about Quality?," IZA Discussion Papers 3838, Institute for the Study of Labor (IZA).
  8. Levy-Garboua, Louis & Montmarquette, Claude & Simonnet, Veronique, 2007. "Job satisfaction and quits," Labour Economics, Elsevier, vol. 14(2), pages 251-268, April.
  9. Richard B. Freeman, 1977. "Job Satisfaction as an Economic Variable," NBER Working Papers 0225, National Bureau of Economic Research, Inc.
  10. Marcus, Jan, 2013. "The Effect of Unemployment on the Mental Health of Spouses – Evidence from plant closures in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 546-558.
  11. Delfgaauw, Josse, 2007. "The effect of job satisfaction on job search: Not just whether, but also where," Labour Economics, Elsevier, vol. 14(3), pages 299-317, June.
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  16. Chadi, Adrian, 2013. "Third Person Effects in Interview Responses on Life Satisfaction," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(2), pages 323-333.
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  19. repec:hal:journl:halshs-00203158 is not listed on IDEAS
  20. Yannis Georgellis & Vurain Tabvuma, 2010. "Does Public Service Motivation Adapt?," Kyklos, Wiley Blackwell, vol. 63(2), pages 176-191, 05.
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