Interaction Between Job Satisfaction, Job Search and Job Change

Labour mobility is an important indicator of labour market flexibility in a global economy. However, it is not clear whether adverse working conditions always lead to job changes. This study examines the interaction between job satisfaction, job search and job changes in a labour market with wage arrears. Data from the Russian Longitudinal Monitoring Survey (RLMS-HSE) for 2016–2021 were used for the analysis. Fixed effects- and instrumental variable models were used for the estimation. The results show that wage arrears lead to a decrease in job satisfaction, and job satisfaction is a significant factor in determining the probability of job search. Job changes are predicted by the job search propensity. Wage arrears reduce job satisfaction and induce workers to look for another job, but have no direct effect on job changes.