Ruhr Economic Papers

Ruhr Economic Papers #388

Job Characteristics and Subjective Well-Being in Australia – A Capability Approach Perspective

by Nicolai Suppa

TU Dortmund, 12/2012, 27 S./p., 8 Euro, ISBN 978-3-86788-443-3 DOI: 10.4419/86788443



Using the capability approach as conceptual framework, the present study examines empirically the effect of job characteristics on subjective well-being. First, I suggest a measurement model for four latent job characteristics, using a confirmatory factor analysis. Then, I examine the job characteristics’ influence on life and job satisfaction, using Australian panel data. The results suggest that (i) the four latent job characteristics are valid constructs, (ii) favourable job characteristics increase life and job satisfaction significantly, (iii) job characteristics account for some of the unemployed’s dissatisfaction, and (iv) controlling for unobserved heterogeneity is crucial in such exercises.

JEL-Classification: I31, J20, D60

Keywords: Job characteristics; life satisfaction; capability approach; factor analysis