Labour market transitions and job satisfaction

The paper investigates the relationship between job satisfaction and labour market transitions. Using a multinomial logit model, a model is estimated on the basis of individual data in which transitions are explained from individual characteristics, job characteristics, dissatisfaction with the job and discrepancies between the actual and the desired number of hours worked. Transitions can be changes in the hours worked, changes to a different job and/or employers, or combinations. Furthermore, people may lose their job and leave employment out of free will. The model has been estimated for three categories of workers according to the number of hours worked. The results show that both dissatisfaction with the job and discrepancies with respect to the hours worked have a significant impact on transition probabilities. Contrary to what is sometimes believed there is no structural increase in transition probabilities. We are still far away from a ‘transtional labour market’. The paper also shows that transitions significantly increase job satisfaction. However, despite the strong improvement in the labour market situation in the 1990s, the percentage of the workers experiencing a dscrepancy between the actual and the desired number of hours has not diminished.