The impact of the near superior’s management on worker wellbeing, retirement intentions, and establishment productivity

This paper studies the impact of the of the near superiors’ management on perceived job satisfaction, early retirement intensions, and the establishment productivity. In addition the paper seeks to study how the impact of the near superior’s management on job satisfaction and early retirement intensions has evolved across time. Data set from the Quality of the Finnish Work Life Surveys (QWLS) which covers a period of almost twenty years and is representative of the whole wage and salary earners and the 2008 QWLS matched with the longitudinal register-based employer-employee data (FLEED) and the Longitudinal Database on Plants in Finnish Manufacturing (LPDM) are used in the analyses. The empirical findings from the econometric analysis show that controlling for the large number of characteristics the quality of the near superior’s management has a large and statistically significant impact on the perceived job satisfaction. The results suggest that the near superior’s management is an important job resource for workers. The quality of the near superior’s management also matters for the early retirement intensions among 45+-year-old workers. The results suggest that there is a positive relationship between the near superior’s management and the establishment productivity, but this relationship is only statistically significant when the turnover per employee was used as a measure of productivity and all the sectors were included in the estimations.