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Role of psychological variables in the determination of the worker's wage: Further evidence from the United States
Author(s) -
Mohanty Madhu S.
Publication year - 2019
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.12140
Subject(s) - wage , national longitudinal surveys , psychology , job satisfaction , variables , social psychology , longitudinal study , structural equation modeling , demographic economics , economics , labour economics , statistics , mathematics
The current study examines the roles of three psychological variables, job satisfaction, positive attitude and self‐satisfaction, in the determination of the worker's wage. Using two samples from the National Longitudinal Survey of Youths, 1979 (NLSY79), the study for the first time models a possible simultaneous relationship among these four variables and estimates these equations by an appropriate two‐stage procedure. Our results indicate that the worker's wage is positively related to these psychological variables. This finding has important policy implications and thus it calls for future research in this direction.