Does Job Satisfaction Improve Health? New Evidence Using Panel Data and Objective Measures of Health

University of St. Gallen FAA Discussion Paper No. DP-110

35 Pages Posted: 14 Jan 2007

See all articles by Justina A. V. Fischer

Justina A. V. Fischer

Organization for Economic Co-Operation and Development (OECD); Stockholm School of Economics; University of Hohenheim

Alfonso Sousa-Poza

University of Hohenheim - Institute of Household and Consumer Economics; IZA Institute of Labor Economics

Date Written: May 2006

Abstract

This paper evaluates the relationship between job satisfaction and measures of health using the Swiss Household Panel (SHP) and cross-sectional data from the Survey on Health, Ageing and Retirement in Europe (SHARE). Methodologically, it addresses two important design problems frequently encountered in the literature: (a) cross-sectional causality problems and (b) unobserved negative affectivity in self-report measures of health status. In this study, however, using the SHP panel structure with job satisfaction lagged eliminates the simultaneity bias, while employing the objective health measures in the SHARE dataset addresses the negative affectivity issue. For all datasets, a positive link is found between job satisfaction and self-report health measures: employees with higher job satisfaction levels are less depressed and feel less impeded in their daily activities. However, when objective measures of physical health are used, no such positive link is observed. Rather, the only positive relationship occurs between job satisfaction and intellectual abilities.

Keywords: job satisfaction, health, panel analysis

JEL Classification: I18, I19, J28

Suggested Citation

Fischer, Justina A.V. and Sousa-Poza, Alfonso, Does Job Satisfaction Improve Health? New Evidence Using Panel Data and Objective Measures of Health (May 2006). University of St. Gallen FAA Discussion Paper No. DP-110 . Available at SSRN: https://ssrn.com/abstract=955734 or http://dx.doi.org/10.2139/ssrn.955734

Justina A.V. Fischer (Contact Author)

Organization for Economic Co-Operation and Development (OECD) ( email )

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Stockholm School of Economics

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University of Hohenheim

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Germany

Alfonso Sousa-Poza

University of Hohenheim - Institute of Household and Consumer Economics ( email )

Fruwirthstrasse 48
Kavaliershaus 4 116
70599 Stuttgart
Germany
++49 (0)711/459-22863 (Phone)
++49 (0)711/459-23953 (Fax)

HOME PAGE: http://www.uni-hohenheim.de/hhoek/englisch/people/alfonsosousapoza/index.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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