Event

SALISES will host a seminar delivered by Dr. George Saridakis, Lecturer in Business Economics, Loughborough University, United Kingdom, on Tuesday 19th January, 2010, at 10 am, at the SALISES Conference Centre. Dr. Saridakis will address the topic, "The Endogeneity Bias in the Relationship between Employee Commitment and Job Satisfaction."

 

Abstract

The effect of job satisfaction on organisational commitment has attracted a great deal of interest in the human resource management and organizational psychology literatures. However, much of the empirical work is based on relatively small sample sizes and neglects the possibility of endogeneity of job satisfaction, potentially leading to biased estimates of the effect of job satisfaction on organizational commitment. Using a large matched employee-employer dataset this paper re-examines the relationship between the two work-related attitudes by employing instrumental variables approach to correct for endogeneity. We show that estimating the determining factors of employee commitment without correcting for endogeneity understate the association. The observed downward bias is not expected when taking account for simultaneity. We suggest that this could result from omitted variables that are negatively correlated with employee commitment.

Dr. Saridakis received his PhD in Economics from the Institute for Social and Economic Research (ISER) at the University of Essex in 2006 and held a Research Fellowship in Applied Economics at the Centre for Small and Medium Sized Enterprises (CSME) at Warwick Business School (WBS) from 2005-2007. His research interests are primarily in the economics of entrepreneurship and small firms, along with a further interest in the economics of crime