Job Satisfaction, Age and Tenure: A Generalized Dynamic Random Effects Model

Kausik Chaudhuri, Kevin T. Reilly and David A. Spencer

March 2014
Working Paper AIRE WP01-2014
JEL Code: C23, C25, J28

This paper examines the effects of age and tenure on job satisfaction. We estimate a generalized dynamic random effects ordered probit model using British Household Panel Survey data. Contrary to previous literature, we find that age has no significant impact on job satisfaction for females, and a limited impact for males who report higher levels of job satisfaction. Our results do not support the well-known U-shape relationship between job satisfaction and age. We also find that tenure shares a non-monotonic relationship with job satisfaction for females. For males, the same result is found only at higher levels of job satisfaction.

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Job Satisfaction, Age and Tenure: A Generalized Dynamic Random Effects Model