Career prospects and tenure-job satisfaction profiles: evidence from panel data

Abstract

This paper investigates the relationship between job tenure and job satisfaction and evaluates whether tenure-job satisfaction profiles are contingent on career advancement opportunities. It uses the British Household Panel Survey Dataset (BHPS). Career status is modelled as an endogenous variable, subject to an initial job choice. The paper concludes that the job satisfaction of individuals employed in jobs with career prospects is not only higher compared with those who are not, but also that their returns to tenure in terms of job satisfaction are significantly higher.