Direct and indirect effects of education on job satisfaction: A structural equation model for the Spanish case

Empirical literature has traditionally analyzed the effect of education on job satisfaction with single-equation models that ignore interrelationships between theoretical explanatory variables. Their results are somewhat inconclusive. We propose estimating a structural equation model to obtain both the direct effects and the set of indirect effects. Analysis of these effects allows us to explain the apparent contradictions that have existed to date, and to improve knowledge of the economic value of education. The proposed model shows that people with higher levels of formal education are more satisfied with their jobs, because they are more likely to access jobs with characteristics that provide greater satisfaction.