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

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  • 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)

Abstract

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.

Suggested Citation

  • Adrian Chadi & Clemens Hetschko, 2014. "The Magic of the New: How Job Changes Affect Job Satisfaction," IAAEU Discussion Papers 201405, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  • Handle: RePEc:iaa:dpaper:201405
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    More about this item

    Keywords

    job satisfaction; job changes; new job; honeymoon-hangover effect; plant closure;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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