Do the Flexible Employment Arrangements Increase Job Satisfaction and the Loyalty of the Employees? An Evidence from Great Britain

Abstract

This study explores the relationship between job satisfaction, employee loyalty and various types of flexible employment arrangements using the Workplace Employee Relations Survey (WERS) in 2004 and 2011. A propensity score matching and fixed effects regressions are applied. Finally, Bayesian Networks (BN) and Directed Acyclic Graphs (DAGs) are employed in order to confirm the causality between employment types explored and the outcomes of interest. Furthermore, an instrumental variables (IV) approach based on BN framework is proposed and applied in this study. The results support that there is a positive causal effect from these employment arrangements on job satisfaction and employee loyalty.

Keywords: Bayesian Networks, Directed Acyclic Graphs, Employee Loyalty, Employment Arrangements, Job Satisfaction, Teleworking, Workplace Employment Relations Survey

JEL Classification: C11, J28, J53, J63, J81