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Job satisfaction (Job satisfaction with age is U shaped with age. (Ceteris…
Job satisfaction
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Absolute earnings and pay satisfaction. (Hauret, Williams 2019)
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Easterlin, increasing standard of living for the nation does not increase national wide satisfaction
However and increase in reference group performance could be seen as a signalling measure for an individual. Therefore raising satisfaction
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How you compare to co workers vs how you compare to neighbors. (Europeans use co workers, built up of age marital status and other variables )(Japanese us neighbors)
How reference group is chosen: self improvement, reference group is set higher. Self enhancement reference group is set lower.
When comparing income to workers in a similar geographical location we get a signally effect. When is distant geographical location we get an envy effect. (Inside Luxembourg vs outside)
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Individuals who work with their families accept lower wages as they gain additional utility by work for their family. (Block et al 2015)
Family employees report great satisfaction level around 4% but are paid around 4.5% compared to other employees
Job satisfaction is a measure of individuals well being at work just like life satisfaction is a measure of overall well- being.
Measured by: Asking people how they feel about their jobs, similarly to the way we ask about overall happiness
Economists measure job satisfaction as a proxy of utility, made up of U=U(Y,H,Z). Y = Wage, H = Hours, Z = Other personal & job characteristics.
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Relative utility U= U(Y,Y,H,Z) Y is a measure of comparison income.
Brunnermeier 2005
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individuals are more likely to remember better outcomes so perceive that more will occur in the future. Optimistic bias.(pay rises vs getting fired)
Blanchard Katz (1999) previous earning are likely to impact on workers aspirations and by implication job satisfaction, with relation to perceived fair wages.
Economist generally think that what people do matters, not what they say, (revealed preference theory)
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