Job satisfaction and subjective well being in Europe
DOI: 10.14254/2071789X.2019/12 4/11 ABSTRACT. This paper addresses 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.