Is the grass greener on the other side? A longitudinal study of the impact of employer change and occupational change on job satisfaction

•The pattern of development of job satisfaction differs between employer change within and across occupations.•There is no significant 'honeymoon' effect associated with employer change within occupation.•Occupational changes are followed by a long-term steady decline of intrinsic job satisfaction.

Research shows that individuals experience a honeymoon-hangover pattern when they change employers. This study provides further insight into this pattern by comparing the experience of those who change employers within and across occupations. Drawing on the longitudinal data from the British House Panel Survey 1991-2008, we find that the honeymoon effect was primarily driven by the experience of those who change employers across occupations. Patterns of post-transition adaptation also differ between the two categories of job changers. While there is evidence of adaptation of job satisfaction to employer change within occupation, those who change employers across occupations experience a steady decline of intrinsic job satisfaction which continues for at least six years after the transition.