How much does income affect job satisfaction? And how much does job satisfaction affect income?


Income doesn’t affect job satisfaction at all and job satisfaction affects income more than you might think:

The present research is concerned with the direction of influence between objective and subjective career success. We conducted a prospective longitudinal study with five waves of measurement that covered a time span of 10 years. Participants were professionals working in different occupational fields (N=1,336). We modelled the changes in objective success (income, hierarchical position), in other-referent subjective success (subjective success as compared to a reference group), and in self-referent subjective success (job satisfaction) by means of latent growth curve analysis. Objective success influenced both the initial level and the growth of other-referent subjective success, but it had no influence on job satisfaction. Most importantly, both measures of subjective success and both their initial levels and their changes had strong influences on the growth of objective success. We conclude that the `objective success influences subjective success’ relationship is smaller than might be expected, whereas the `subjective success influences objective success’ relationship is larger than might be expected.

Source: “How do objective and subjective career success interrelate over time?” from Journal of Occupational and Organizational Psychology, Volume 82, Number 4, December 2009 , pp. 803-824(22)

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