The Job Satisfaction-Life Satisfaction Relationship Revisited: Using the Lewbel Estimation Technique to Estimate Causal Effects Using Cross-Sectional Data

This paper uses a novel identification strategy proposed by Lewbel (2012, J. Bus. Econ. Stat.) to illustrate how causation between job satisfaction and life satisfaction can be established with cross-sectional data. In addition to examining the relationship between composite job satisfaction and life satisfaction, we consider the relationship between life satisfaction and different facets of job satisfaction. We find evidence of bidirectional causality between job satisfaction and life satisfaction and mixed evidence of causation between life satisfaction and different facets of job satisfaction.