Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 06-1: New Evidence on Cross-Country Differences in Job Satisfaction Using Anchoring Vignettes.

Nicolai Kristensen () and Edvard Johansson ()
Additional contact information
Nicolai Kristensen: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Edvard Johansson: The Research Institute of the Finnish Economy

Abstract: This paper presents results on cross-country comparison of job sat- isfaction across seven EU countries taking into account that people in di¤erent countries may perceive subjective questions di¤erently. We apply a chopit model approach where the threshold parameters in an ordered probit model are re-scaled through anchoring vignettes. Com- pared to a traditional ordered probit model, which yields the familiar result that Denmark is ranked in the very top followed by Finland, the country ranking is altered when the chopit model is applied. In this case, the Scandinavian countries are ranked somewhat lower while workers from the Netherlands are found to have the highest level of job satisfaction. These results suggest that cultural di¤erences in the way people perceive subjective questions about satisfaction make simple cross-country comparison misleading.

Keywords: Job Satisfaction; Cross-Country Comparison; Chopit Model

JEL-codes: C25; I31

32 pages, January 1, 2006

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