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
Date Written: January 31, 2019
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: Suggested Citation