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Extra Status and Extra Stress: Are Promotions Good for Us?

Author

Listed:
  • Johnston, David W.

    () (Monash University)

  • Lee, Wang-Sheng

    () (Deakin University)

Abstract

Promotions ordinarily involve higher wages and greater privileges; but they also often involve increased responsibility, accountability and work hours. Therefore, whether promotions are good for workers' wellbeing is an empirical question. Using high-quality panel data we estimate pre- and post-promotion effects on job attributes, physical health, mental health and life satisfaction, in an attempt at answering this question. We find that promotions substantially improve job security, pay perceptions and overall job satisfaction in the short term, and that promotions have short and longer term effects on job control, job stress, income and hours worked. However, despite these large effects on job attributes, we find that promotions have negligible effects on workers' health and happiness. Only mental health seems affected, with estimates suggesting significant deterioration two years after receiving a promotion. Thus, it seems the additional stress involved with promotions eventually outweighs the additional status, at least for the average worker.

Suggested Citation

  • Johnston, David W. & Lee, Wang-Sheng, 2012. "Extra Status and Extra Stress: Are Promotions Good for Us?," IZA Discussion Papers 6675, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6675
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    References listed on IDEAS

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    1. Griffin, Joan M. & Fuhrer, Rebecca & Stansfeld, Stephen A. & Marmot, Michael, 2002. "The importance of low control at work and home on depression and anxiety: do these effects vary by gender and social class?," Social Science & Medicine, Elsevier, vol. 54(5), pages 783-798, March.
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    Cited by:

    1. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2015. "Non-Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 256-275, April.
    2. Adrian Chadi & Clemens Hetschko, 2015. "How Job Changes Affect People's Lives: Evidence from Subjective Well-Being Data," SOEPpapers on Multidisciplinary Panel Data Research 747, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Grimani, Katerina, 2014. "Labor earnings and Psychological well-being: An Empirical Analysis," MPRA Paper 57098, University Library of Munich, Germany.

    More about this item

    Keywords

    status; stress; job satisfaction; promotion;

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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