Self-selection models for public and private sector job satisfaction

Abstract

We discuss a class of copula-based ordered probit models with endogenous switching. Such models can be useful for the analysis of self-selection in subjective well-being equations in general, and job satisfaction in particular, where assignment of regressors may be endogenous rather than random, resulting from individual maximization of well-being. In an application to public and private sector job satisfaction, and using data on male workers from the German Socio-Economic Panel for 2004, and using two alternative copula functions for dependence, we find consistent evidence for endogenous sector selection.

Citation

Luechinger, S., Stutzer, A. and Winkelmann, R. (2010), "Self-selection models for public and private sector job satisfaction", Polachek, S.W. and Tatsiramos, K. (Ed.) Jobs, Training, and Worker Well-being (Research in Labor Economics, Vol. 30), Emerald Group Publishing Limited, Leeds, pp. 233-251. https://doi.org/10.1108/S0147-9121(2010)0000030010