Abstract
The correlation between measures of a high level of job satisfaction and well-being is well documented in the literature; however, such a relationship may be potentially bidirectional. If an increase in job satisfaction affects optimal well-being, the reverse relationship can also be hypothesized. In addition, the relationship between job satisfaction and well-being may be polluted by the presence of omitted variables that can be correlated both with the satisfaction in the workplace and with a measure of optimal wellbeing. Using the sixth round of the European Social Survey, this paper utilizes an instrumental variable approach to isolate the effect of job satisfaction on optimal well-being variation that is independent of unobserved individual characteristics. After having controlled for the role of socio-economic profiles of interviewed individuals, our findings confirm a strong and significantly positive influence of job satisfaction on optimal well-being. The novelty of our analysis is twofold: firstly, we employ an instrumental variable approach to correct for endogeneity that might the effect of job satisfaction on well-being. Secondly, we use an innovative measure of optimal well-being, which we adopt as an outcome variable for measuring a multi-dimensional definition of well-being dealing with both hedonic and eudemonic streams.
Similar content being viewed by others
Notes
Eastern (post-communist) countries include Estonia, Bulgaria, Russia, Slovakia, Ukraine. Continental category includes Belgium, Germany, Switzerland, Nordic category includes Denmark, Finland, Norway, Netherlands, Sweden, Anglo-Saxon category includes United Kingdom and Ireland; Mediterranean countries are Spain, Portugal and Cyprus. Other is a residual category including the remaining countries which have controversial or mixed attributions (e.g. include both traits from post-communist and continental).
Results from the model do not change after varying the cut-point. In particular, if we separate micro enterprises (below 10 workers) from the others, the regression results are exactly the same.
References
Baptiste, N.R.: Tightening the link between employee wellbeing at work and performance: a new dimension for HRM. Manag. Decis. 46, 284–309 (2008)
Baum, C.F., Schaffer, M.E., Stillman, S.: Instrumental variables and GMM: estimation and testing. Stata J. 3(1), 1–31 (2003)
Blanchflower, D.G., Oswald, A.J.: Is well-being U-shaped over the life cycle?. NBER Working Paper No. 12935. National Bureau of Economic Research, Cambridge (2007)
Bowling, N.A., Eschleman, K.J., Wang, Q.: A meta-analytic examination of the relationship between job satisfaction and subjective well-being. J. Occup. Organ. Psychol. 83(4), 915–934 (2010)
Campbell, A.: The Sense of Well-Being in America: Recent Patterns and Trends. McGraw Hill, New York (1981)
Campbell, A., Converse, P.E., Rodgers, W.L.: The Quality of American Life. Russell Sage Foundation, New York (1976)
Chen, W.C.: How education enhances happiness: comparison of mediating factors in four East Asian countries. Soc. Indic. Res. 106(1), 117–131 (2012)
Cheung, F., Lucas, R.E.: Assessing the validity of single-item life satisfaction measures: results from three large samples. Qual. Life Res. 23(10), 2809–2818 (2014)
Clark, A.E., Oswald, A.J.: Unhappiness and unemployment. Econ. J. 104(424), 648–659 (1994)
Crisp, R.: Well-Being. Stanford Encyclopedia of Philosophy, Stanford (2008)
De Neve, J.E., Diener, E., Tay, L., Xuereb, C.: The Objective Benefits of Subjective Well-Being. World Happiness Report 2013. UN Sustainable Development Solutions Network, New York (2013)
Diener, E.: Subjective well-being. Psychol. Bull. 95, 542–575 (1984)
Diener, E., Sandvik, E., Seidlitz, L., Diener, M.: The relationship between income and subjective well-being: relative or absolute? Soc. Indic. Res. 28(3), 195–223 (1993)
Diener, E., Suh, E.M., Lucas, R.E., Smith, H.L.: Subjective well-being: three decades of progress. Psychol. Bull. 125(2), 276–303 (1999)
Dolbier, C.L., Webster, J.A., McCalister, K.T., Mallon, M.W., Steinhardt, M.A.: Reliability and validity of a single-item measure of job satisfaction. Am. J. Health Promot. 19(3), 194–198 (2005)
Donegani, C.P., McKay, S.: Is there a paradox of lower job satisfaction among trade union members? European evidence. Eur. Rev. Labour Res. 18(4), 471–489 (2012)
Easterlin, R.A.: Does economic growth improve the human lot? Some empirical evidence. In: David, P.A., Reder, M.W. (eds.) Nations and Households in Economic Growth: Essays in Honor of Moses Abramowitz, pp. 89–125. Academic Press, New York (1974)
Edwards, J.R., Rothbard, N.P.: Work and family stress and well-being: an examination of person-environment fit in the work and family domains. Organ. Behav. Hum. Decis. Process. 77(2), 85–129 (1999)
ESS Round 6: European Social Survey Round 6 Data, file edition 2.3. NSD—Norwegian Centre for Research Data, Norway—Data Archive and distributor of ESS data for ESS ERIC (2012)
Faragher, E.B., Cass, M., Cooper, C.L.: The relationship between job satisfaction and health: a meta-analysis. Occup. Environ. Med. 62(2), 105–112 (2005)
Flavin, P., Shufeldt, G.: Labor union membership and life satisfaction in the United States. Labor Stud. J. 41(2), 171–184 (2016)
Foote, D.A., Li-Ping Tang, T.: Job satisfaction and organizational citizenship behavior (OCB) does team commitment make a difference in self-directed teams? Manag. Decis. 46, 933–947 (2008)
Frey, B., Stutzer, A.: The economics of happiness. World Econ. 3(1), 25–41 (2002)
García-Serrano, C.: Does size matter? The influence of firm size on working conditions, job satisfaction and quit intentions. Scott. J. Polit. Econ. 58(2), 221–247 (2011)
Giovannini, E., Rondinella, T.: Measuring equitable and sustainable wellbeing in Italy. In: Maggino, F., Nuvolati, G. (eds.) Quality of Life in Italy, pp. 9–25. Springer, Dordrecht (2012)
Green, F., Zhu, Y.: Overqualification, job dissatisfaction and increasing dispersion in the returns to graduate education. Oxf. Econ. Pap. 62, 740–763 (2010)
Headey, B., Veenhoven, R., Wearing, A.: Top-down versus bottom-up theories of subjective well-being. Soc. Indic. Res. 24, 81–100 (1991)
Herzberg, F.: One more time: how do you motivate employees. Harvard Bus. Rev. 46(1), 53–62 (1968)
Hipp, L., Givan, R.K.: What do unions do? A cross-national reexamination of the relationship between unionization and job satisfaction. Soc. Forces 94(1), 349–377 (2015)
Huppert, F.A., So, T.T.: Flourishing across Europe: application of a new conceptual framework for defining well-being. Soc. Indic. Res. 110(3), 837–861 (2013)
Judge, T.A., Hulin, C.L.: Job satisfaction as a reflection of disposition: a multiple source causal analysis. Organ. Behav. Hum. Decis. Process. 56, 388–421 (1993)
Judge, T.A., Locke, E.A.: Effect of dysfunctional thought processes on subjective well-being and job satisfaction. J. Appl. Psychol. 78(3), 475–490 (1993)
Judge, T.A., Watanabe, S.: Another look at the job satisfaction–life satisfaction relationship. J. Appl. Psychol. 78, 939–948 (1993)
Judge, T.A., Watanabe, S.: Individual differences in the nature of the relationship between job and life satisfaction. J. Occup. Organ. Psychol. 67(2), 101–107 (1994)
Judge, T.A., Locke, E.A., Durham, C.C., Kluger, A.N.: Dispositional effects on job and life satisfaction: the role of core evaluations. J. Appl. Psychol. 83, 17–34 (1998)
Judge, T.A., Thoresen, C.J., Bono, J.E., Patton, G.K.: The job satisfaction–job performance relationship: a qualitative and quantitative review. Psychol. Bull. 127(3), 376–407 (2001)
Kabanoff, B.: Work and nonwork: a review of models, methods, and findings. Psychol. Bull. 88(1), 60–77 (1980)
Kahneman, D., Deaton, A.: High income improves evaluation of life but not emotional well-being. Proc. Natl. Acad. Sci. 107(38), 16489–16493 (2010)
Kahneman, D., Diener, E., Schwarz, N.: Well-Being: Foundations of Hedonic Psychology. Russell Sage Foundation, New York (1999)
Kunin, T.: The construction of a new type of attitude measure. Pers. Psychol. 8(1), 65–77 (1955)
LaPiere, R.T.: Attitudes vs. actions. Soc. Forces 13(2), 230–237 (1934)
Locke, E.A.: The nature and causes of job satisfaction. In: Dunnette, M.D. (ed.) Handbook of Industrial and Organizational Psychology, pp. 1297–1343. Rand McNally, Chicago (1976)
Millán, J.M., Hessels, J., Thurik, R., Aguado, R.: Determinants of job satisfaction: a European comparison of self-employed and paid employees. Small Bus. Econ. 40(3), 651–670 (2013)
Moorman, R.H.: The influence of cognitive and affective based job satisfaction measures on the relationship between satisfaction and organizational citizenship behavior. Hum. Relat. 46(6), 756–776 (1993)
Morrone, A., Piscitelli, A., D’Ambrosio, A.: How disadvantages shape life satisfaction: an alternative methodological approach. Soc. Indic. Res. (2017). https://doi.org/10.1007/s11205-017-1825-8
Musick, K., Bumpass, L.: Reexamining the case for marriage: union formation and changes in well-being. J. Marriage Fam. 74(1), 1–18 (2012)
Nagy, M.S.: Using a single-item approach to measure facet job satisfaction. J. Occup. Organ. Psychol. 75(1), 77–86 (2002)
Nussbaum, M., Sen, A.: The Quality of Life. Clarendon Press, Oxford (1993)
Pder, K., Kerem, K.: Social models in a European comparison. East. Eur. Econ. 49(5), 55–74 (2011)
Prendergast, K.B., Schofield, G.M., Mackay, L.M.: Associations between lifestyle behaviours and optimal wellbeing in a diverse sample of New Zealand adults. BMC Public Health 16(1), 1–11 (2016)
Quoidbach, J., Dunn, E.W., Petrides, K.V., Mikolajczak, M.: Money giveth, money taketh away: the dual effect of wealth on happiness. Psychol. Sci. 21(6), 759–763 (2010)
Rain, J.S., Lane, I.M., Steiner, D.D.: A current look at the job satisfaction/life satisfaction relationship: review and future considerations. Hum. Relat. 44(3), 287–307 (1991)
Rice, R.W., Near, J.P., Hunt, R.G.: The job-satisfaction/life-satisfaction relationship: a review of empirical research. Basic Appl. Soc. Psychol. 1, 37–64 (1980)
Rivers, D., Vuong, Q.H.: Limited information estimators and exogeneity tests for simultaneous probit models. J. Econom. 39, 347–366 (1988)
Robins, L., Reiger, D.: Psychiatric Disorders in America: The Epidemiological Catchment Area Study. Free Press, New York (1991)
Ryan, R.M., Deci, E.L.: On happiness and human potentials: a review of research on hedonic and eudaimonic well-being. Annu. Rev. Psychol. 52(1), 141–166 (2001)
Ryff, C.D., Singer, B.H.: Know thyself and become what you are: a eudaimonic approach to psychological well-being. J. Happiness Stud. 9(1), 13–39 (2008)
Saridakis, G., Muñoz-Torres, R., Tracey, P.: The endogeneity bias in the relationship between employee commitment and job satisfaction. Cambridge Judge Business School, Working Paper Series, vol. 2009, no. 3, pp. 1–15 (2009)
Shmotkin, D.: Happiness in the face of adversity: reformulating the dynamic and modular bases of subjective well-being. Rev. Gen. Psychol. 9, 291–325 (1990)
Smith, P.C., Kendall, L.M., Hulin, C.L.: The Measurement of Satisfaction in Work and Retirement: A Strategy for the Study of Attitudes. Rand McNally, Chicago (1969)
Spector, P.E.: Job Satisfaction: Applications, Assessment, Causes and Consequences. Sage Publications, Thousand Oaks (1997)
Statt, D.: The Routledge Dictionary of Business Management, 3rd edn. Routledge Publishing, Detroit (2004)
Thompson, E.R., Phua, F.T.: A brief index of affective job satisfaction. Group Org. Manag. 37(3), 275–307 (2012)
Thuen, F., Reime, M.H., Skrautvoll, K.: The effect of widowhood on psychological wellbeing and social support in the oldest groups of the elderly. J. Ment. Health 6(3), 265–274 (1997)
Verbakel, E.: Subjective well-being by partnership status and its dependence on the normative climate. Eur. J. Popul. 28(2), 205–232 (2012)
Wanous, J.P., Reichers, A.E., Hudy, M.J.: Overall job satisfaction: how good are single-item measures? J. Appl. Psychol. 82(2), 247–252 (1997)
Warr, P.: Work, Unemployment, and Mental Health. Clarendon Press, Oxford (1987)
Weiss, H.M., Nicholas, J.P., Daus, C.S.: An examination of the joint effects of affective experiences and job beliefs on job satisfaction and variations in affective experiences over time. Organ. Behav. Hum. Decis. Process. 78(1), 1–24 (1999)
Wright, T.A., Cropanzano, R.: Psychological well-being and job satisfaction as predictors of job performance. J. Occup. Health Psychol. 5(1), 84–94 (2000)
Yahyagil, M.Y.: Values, feelings, job satisfaction and well-being: the Turkish case. Manag. Decis. 53(10), 2268–2286 (2015)
Yu, Z., Chen, L.: Income and well-being: relative income and absolute income weaken negative emotion, but only relative income improves positive emotion. Front. Psychol. 7(2012), 1–6 (2016). https://doi.org/10.3389/fpsyg.2016.02012
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Sironi, E. Job satisfaction as a determinant of employees’ optimal well-being in an instrumental variable approach. Qual Quant 53, 1721–1742 (2019). https://doi.org/10.1007/s11135-019-00835-3
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11135-019-00835-3