Regional differences in job satisfaction

Abstract

Job satisfaction is significantly higher in Wales than in London and the South East, the rest of England and Scotland. This is despite the fact that among these four regions, earnings are lowest in Wales. Using data from the British Household Panel Survey (BHPS), we investigate the determinants of job satisfaction and attempt to explain why workers in Wales are happier in their work than workers in other parts of the UK. We find that workers in Wales appear to be less concerned about pay than workers in other regions. We suggest that because lower earnings tend to be associated with higher levels of unemployment and inactivity, being in work may be regarded more favourably in more economically depressed regions. We also suggest the climate of industrial relations, as perceived by workers, is better in Wales than elsewhere.