Socioeconomic effects on employee well-being : preference identification in response to non-standard labor market conditions

• Main Author: Pouliakas, Konstantinos
• Published: University of Aberdeen 2007
• Subjects: 331.12
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.445148

This thesis investigates the effects of ‘atypical’ forms of employment, induced by labour market flexibility, on <i>employee well-being</i>. The empirical analysis uses subjective job satisfaction information included in large household panel surveys (BHPS, ECHP) and in an original cross-section sample of low-skilled workers in Europe (EPICURUS). Apart from assisting in the establishment of consensus regarding the impact of various determinants of job satisfaction, it also extends the conventional specification by incorporating several “new” explanatory variables in the model, such as part-time work, measures of working conditions, as well as incentive pay. In this manner it proves that the ultimate effect of unstable working arrangements on job satisfaction depends on the extent to which individuals who work in these do so by choice rather than compulsion. Furthermore, it empirically verifies that one of the most significant non-pecuniary ‘costs’ of inferior working conditions is reduced employee motivation and job satisfaction. The thesis also casts doubt on non-economic arguments claiming that the provision of incentive pay is detrimental to job security and to the intrinsic satisfaction that workers derive from their jobs. An important asymmetry is moreover uncovered in the manner in which individual and gain-sharing incentives affect the overall utility of employees, as only the latter are found to have a positive effect. A major novelty of this thesis is that it utilizes a new technique for measuring employee preferences, namely the so-called <i>conjoint analysis method</i>. This approach enables the detection of the <i>ex ante </i>preferences of workers over a given number of attributes that are typical of most jobs, prior any psychological adaptation phenomena coming into play. Insights for policymakers are derived that are expected to inform the design of a more socially cohesive welfare policy.