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Wages and Job Satisfaction in Portugal


  • José Vieira


  • João Couto


  • Maria Teresa Borges-Tiago



The interest in the analysis of job satisfaction has increased among economists. Indeed, reported levels of satisfaction have been seen as a good predictor of individual behaviour such as job turnover, productivity and absenteeism. Because of this, several studies have tried to identify the determinants of job satisfaction. This paper is concerned with job satisfaction in Portugal. For this purpose, we use the first six waves of the European Household Panel Data (ECHP). The panel nature of the data allows us to use a random effects estimator in order to control for unobservable individual heterogeneity. The results indicate that wages matter for job satisfaction but do not tell the whole story. In particular, having a good health status, a permanent contract and working the public sector influences positively the level satisfaction. We also find a great heterogeneity in satisfaction by regions, even in a small country as Portugal. These findings are valid for overall job satisfaction as well as for satisfaction with specific job domains such as pay, security, type of work and hours worked. Key words: job satisfaction, wages, regions, unobserved heterogeneity JEL Code: J28

Suggested Citation

  • José Vieira & João Couto & Maria Teresa Borges-Tiago, 2004. "Wages and Job Satisfaction in Portugal," ERSA conference papers ersa04p667, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p667

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    References listed on IDEAS

    1. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-141, May.
    2. Miller, Paul W, 1990. "Trade Unions and Job Satisfaction," Australian Economic Papers, Wiley Blackwell, vol. 29(55), pages 226-248, December.
    3. repec:lan:wpaper:1084 is not listed on IDEAS
    4. Shields, Michael A & Price, Stephen Wheatley, 2002. "Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession," Economica, London School of Economics and Political Science, vol. 69(274), pages 295-226, May.
    5. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    6. J Taylor & S Bradley & A N Nguyen, 2003. "Job autonomy and job satisfaction: new evidence," Working Papers 541528, Lancaster University Management School, Economics Department.
    7. Guillaume R. Frechette, 2001. "Random-effects ordered probit," Stata Technical Bulletin, StataCorp LP, vol. 10(59).
    8. Andrew E. Clark, 1996. "Job Satisfaction in Britain," British Journal of Industrial Relations, London School of Economics, vol. 34(2), pages 189-217, June.
    9. repec:lan:wpaper:1021 is not listed on IDEAS
    10. Rannia Leontaridi & Peter Sloane, 2001. "Measuring The Quality Of Jobs," LoWER Working Papers wp7, AIAS, Amsterdam Institute for Advanced Labour Studies.
    11. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December.
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    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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