Working hours and job satisfaction in China: A threshold analysis

Abstract

This study utilizes a threshold model to examine the nonlinear relationship between working hours and job satisfaction, using the open-access data of the 2018 China Family Panel Studies. We address the endogeneity of working hours utilizing an instrumental variable-based two-stage residual inclusion approach. The threshold model shows that the effects are indeed different. Working more than 9 h reduces workers' job satisfaction, and these reductions are even greater among those working more than 12 h. Heterogeneous analysis reveals that working long hours reduces the job satisfaction of female employees more than that of their male counterparts; the job satisfaction of unmarried individuals is unaffected by how long they work, whereas that of married workers declines when they work longer hours. Also, although the job satisfaction of wage-employed workers falls with an increase in the number of hours worked regardless of how long they work, that of self-employed workers falls only when they work more than 12 h. Poor physical health mediates the adverse effects of long working hours on job satisfaction. Finally, working long hours reduces individuals' short-run hedonic well-being but does not affect their perceptions and feelings towards various facets of life in the long run.