Abstract
Independent single-equation models and structural equation models are used to analyze both direct and indirect impacts of education length, and of the match between education and employment, on job satisfaction after controlling for individual-specific and job-specific attributes, including health status and wages. The main results show that: (1) education/job mismatches, both in level and domain, reduce utility from work irrespective of schooling years and other individual/job characteristics; (2) the effects of education on job satisfaction are mainly indirect effects transmitted though the influence of schooling on workers’ health status, wages and other observable job characteristics; and (3) neglecting the structure of covariance among the determinants of job satisfaction results in upward bias in the estimation of the direct effect of schooling length, and in downward bias in the estimates for the effects of other personal circumstances.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
The question used to define subjective overqualification was worded as “Do you think your skills and personal conditions would enable you to perform a more qualified job than your current job?” (yes = 1/no = 0)
The question used to define the perception about the relationship between education and work was worded as “Did your education and training provide you with the knowledge needed in your current work?” (yes = 1/no = 0)
References
Allen, J., & van der Velden, R. (2001). Educational mismatches versus skill mismatches: Effects on wage, job satisfaction, and on-the-job search, (Vol. 3, pp. 434–452). Oxford: Oxford University Press.
Arrow, K. (1997). The benefits of education and the formation of preferences. In J. R. Behrman & N. Stacy (Eds.), In The social benefits of education, Ann Arbor, University of Michigan Press.
Badillo-Amador, L., García-Sanchez, A., & Vila, L. E. (2005). Mismatches in the Spanish labor market: Education vs. competence match. International Advances in Economic Research, 11, 93–109.
Battu, H., Belfield, C. R., & Sloane, P. J. (1999). Overeducation among Graduates: A Cohort View. Education Economics, 7(1), 21–37.
Belfield, C. R., & Harris, R. D. G. (2002). How well do theories of job matching explain variation in job satisfaction across education levels? Evidence for U.K. graduates. Applied Economics, 34(5), 535–548.
Berger, M., & Leigh, J. P. (1989). Schooling, self-selection and health. Journal of Human Resources, 24(3), 433–455.
Blanchflower, D. G. (2000). Self-employment in OECD countries. Labor Economics, 7(5), 471–505.
Blanchflower, D. G., & Oswald, A. J. (2002). Well-being over time in Britain and the USA. National bureau of economic research. Working Paper 7487.
Card, D. (1999). The causal effect of education on earnings. In O. Ashenfelter, & D. Card (Eds.), In Handbook of Labor Economics 3. Amsterdam: Elsevier Science D.V.
Card, D. (2001). Estimating the return to schooling: Progress on some persistent econometric problems. Econometrica, 69(5), 1127–1160.
Clark, A. E. (1996). Job satisfaction in Britain. British Journal of Industrial Relations, 34(2), 189–217.
Clark, A. E., & Oswald, A. J. (1996). Satisfaction and comparison income. Journal of Public Economics, 61(6), 359–381.
De Santis, V. S., & Durst, S. L. (1996). Comparing job satisfaction among public and private sector employees. American Review of Public Administration, 26, 237–343.
Grossman, M., & Kaestner (1997). Effects of education on health. In J. R. Behrman & N. Stacy (Eds.), In The social benefits of education, Ann Arbor, University of Michigan Press.
Hamermesh, D. S. (2001). The changing distribution of job satisfaction. Journal of Human Resources, 16(1), 1–30.
Hartog, J., & Oosterbek, H. (1998). Health, wealth and happiness. Why pursue a higher education? Economics of Education Review, 17(3), 245–256.
Haveman, R. H., & Wolfe, B. L. (1984). Schooling and economic well-being: The role of nonmarket effects. Journal of Human Resources, 19(3), 378–407.
Haveman, R. H., Wolfe, B. L., Kreider, B., & Stone, M. (1994). Market work, wages and men’s health. Journal of Health Economics, 13, 163–182.
Idson, T. L. (1990). The establishment size, job satisfaction and the structure of work. Applied economics, 22, 1007–1018.
Johnson, G. J., & Johnson, W. R. (2002). Perceived overqualification and dimensions of job satisfaction: A longitudinal analysis. Journal of Psychology, 134(5), 537–555.
Karl, K. A., & Sutton, C. L. (1998). Job values in 0 today’s workforce: A comparison of public and private sector employees. Public Personnel Management, 27(4), 515–527.
Kenkel, D. S. (1991). Healthy behavior, health knowledge, and schooling. Journal of Political Economy, 99(2), 287–305.
McMahon, W. (1998). Conceptual framework for the analysis of the social benefits of lifelong learning. Education Economics, 6(3), 309–346.
Meng, R. (1990). The relationship between unions and job satisfaction. Applied economics, 22, 1635–1648.
Ross, C. E., & Reskin, B. F. (1992). Education, control at work, and job satisfaction. Social Science Research, 21, 134–148.
Ross, C. E., & Wu, C. (1995). The links between education and health. American Sociological Review, 60, 714–745.
Sloane, P. J., & Williams, H. (1996). Are overpaid workers really unhappy? A test of the theory of cognitive dissonance. Labor, 10, 3–15.
Souza-Poza, A., & Souza-Poza, A. A. (2000). Taking another look at the gender/job satisfaction paradox. Kyklos, 53, 135–152.
Vila, L. E. (2000). The non-monetary benefits of education. European Journal of Education, 35(1), 21–32.
Vila, L. E. (2005). The outcomes of investment in education and people’s well-being. European Journal of Education, 40(1), 3–11.
Vila, L. E., & García-Mora, B. (2005). Education and the determinants of job satisfaction. Education Economics, 13(4), 409–425.
Wolfe, B. L., & Zuvekas, S. (1997). Nonmarket outcomes of schooling. International Journal of Education Research, 27, 491–502.
Author information
Authors and Affiliations
Corresponding author
Appendices
Appendix A
Measures of Goodness-of-Fit for SEM
Appendix B
Indirect and Total Effects
Rights and permissions
About this article
Cite this article
Fabra Florit, E., Vila Lladosa, L.E. Evaluation of the Effects of Education on Job Satisfaction: Independent Single-Equation vs. Structural Equation Models. Int Adv Econ Res 13, 157–170 (2007). https://doi.org/10.1007/s11294-007-9081-3
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11294-007-9081-3