Do the Flexible Employment Arrangements Increase Job Satisfaction and Employee Loyalty? Evidence from Bayesian Networks and Instrumental Variables

International Journal of Computational Economics and Econometrics, Special Issue on: Coping with Uncertainty in Complex Socio-Economic Systems, 9(1/2), 84-115, 2019

48 Pages Posted: 30 Jun 2019 Last revised: 1 Jul 2019

See all articles by Eleftherios Giovanis

Eleftherios Giovanis

Manchester Metropolitan University-Department of Economics, Policy and International Business; Nazilli Faculty of Economics and Administrative Sciences

Date Written: January 31, 2019

Abstract

This study explores the relationship between job satisfaction, employee loyalty and two types of flexible employment arrangements; teleworking and flexible timing. The analysis relies on data derived from the workplace employment relations survey (WERS) in 2004 and 2011. We apply the propensity score matching approach and least squares regressions. Furthermore, we employ the Bayesian networks (BN) and directed acyclic graphs (DAGs) to confirm the causality between employment types explored and the outcomes of interest. Additionally, we propose an instrumental variables (IV) approach based on the BN framework. The results support that a positive causal effect from these employment arrangements on job satisfaction and employee loyalty is present.

Keywords: BN, Bayesian networks, DAGs, directed acyclic graphs, employee loyalty, employment arrangements, flexible timing, job satisfaction, teleworking, WERS, workplace employment relations survey

JEL Classification: C11, C26, I3, J31

Suggested Citation

Giovanis, Eleftherios, Do the Flexible Employment Arrangements Increase Job Satisfaction and Employee Loyalty? Evidence from Bayesian Networks and Instrumental Variables (January 31, 2019). International Journal of Computational Economics and Econometrics, Special Issue on: Coping with Uncertainty in Complex Socio-Economic Systems, 9(1/2), 84-115, 2019. Available at SSRN: https://ssrn.com/abstract=3411504 or http://dx.doi.org/10.2139/ssrn.3411504

Eleftherios Giovanis (Contact Author)

Manchester Metropolitan University-Department of Economics, Policy and International Business ( email )

Business School
All Saints Campus
Manchester, M15 6BH
United Kingdom

Nazilli Faculty of Economics and Administrative Sciences ( email )

Nazilli IIBF
Sumer Kampusu
Aydin, Nazilli 09800
Turkey

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