An Ordered Probit Model of Job Satisfaction in the Former Yugoslav Republic of Macedonia

The aim of this paper is to investigate empirically the determinants of job satisfaction in the Former Yugoslav Republic of Macedonia (FYROM). Job satisfaction is correlated with labor market behavior demonstrated through productivity. The data set survey of 2000 employees is used to investigate the job satisfaction in the FYROM. Due to the lack of data from the State Statistical Office or other relevant institutions, we carry out a survey which involves interviews with employees and covers the entire region of the country. Ordered probit model is employed to measure the relationships of job satisfaction to a variety of individual and job-related characteristics. The results show that employees with good education, wage level satisfaction, good work conditions, career and secure job, as well as longer experience are more satisfied with their jobs than those who are less educated, wage level dissatisfied, have bad work conditions, not so successful career and job security and shorter experience. Contrary to previous studies, the skills management does not have any effect on job satisfaction, no matter whether it is bad or good. Furthermore, good relationships of the employees with the management, with consumers and with friends show positive impact on job satisfaction compared to those who have bad relationships. This result is in line with the previous literature from the field. Other results also conform to those found in the literature, such as women being more satisfied than men. These results may be useful to policy makers both at the public and private sector and employers in general. The study has some limitations with possibility to include social relations such as volunteering, meeting with friends, visiting relatives and religious institutions.