SSE/EFI Working Paper Series in Economics and Finance
Justina AV Fischer
DOES JOB SATISFACTION IMPROVE THE HEALTH OF WORKERS? NEW EVIDENCE USING PANEL DATA AND OBJECTIVE MEASURES OF HEALTH
() and Alfonso Sousa-Poza
Abstract: This paper evaluates the relationship between job
satisfaction and measures of health of workers using the German
Socio-Economic Panel (GSOEP). Methodologically, it addresses two important
design problems encountered frequently in the literature: (a)
cross-sectional causality problems and (b) absence of objective measures of
physical health that complement self-reported measures of health status.
Not only does using the panel structure with individual fixed effects
mitigate the bias from omitting unobservable personal psycho-social
characteristics, but employing more objective health measures such as
health-system contacts and disability addresses such measurement problems
relating to self-report assessments of health status.
We find a
positive link between job satisfaction (and changes over time therein) and
subjective health measures (and changes therein); that is, employees with
higher or improved job satisfaction levels feel healthier and are more
satisfied with their health. This observation also holds true for more
objective measures of health. Particularly, improvements in job
satisfaction over time appear to prevent workers from (further) health
Keywords: job satisfaction; well-being; health; panel data analysis; (follow links to similar papers)
JEL-Codes: I18; I19; J28; (follow links to similar papers)
37 pages, September 28, 2007
forthcoming in 'Health Economics'
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