Massimo Cannas,

University of Cagliari, Italy

E-mail: massimo.cannas@unica.it

Job satisfaction and subjective well-being in Europe

Bruno S. Sergi,

Harvard University, USA 

& University of Messina, Italy

E-mail: bsergi@fas.harvard.edu

Emiliano Sironi,

Università Cattolica del Sacro Cuore, Italy

E-mail: emiliano.sironi@unicatt.it

Urszula Mentel,

Rzeszów University of Technology, Poland

E-mail: u.mentel@prz.edu.pl

Abstract. This paper goes through some recent developments in the field of management science and economics of well-being, trying to prove a link between working conditions and subjective well-being. Using the fifth round of the European Social Survey, which is the most recent set of data with a module focusing on the inter-relations between work, family and well-being, this paper uses an instrumental variable approach to estimate the effect of job satisfaction on subjective Well-being. The direction of the relationship between these two variables has always been controversial because of endogeneity. Results, also exploring the role of working contract and welfare systems, allow for isolating a considerable influence on job satisfaction in increasing people's subjective well-being. Results are robust even if the restriction condition is violated. Job satisfaction increases subjective well-being even if the instrumental variables are not uncorrelated with the error of the main equation.

Received: August, 2019

1st Revision: August, 2019

Accepted: October, 2019

DOI: 10.14254/2071-789X.2019/12-4/11

JEL Classification: J28, I31

Keywords: job satisfaction, subjective wellbeing, management, instrumental variables, validity of the instruments, European Social Survey