Role of psychological variables in the determination of the worker's wage: Further evidence from the United States

Abstract

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.