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Extra Status and Extra Stress: Are Promotions Good for Us?

Author

Listed:
  • Johnston, David W.

    (Monash University)

  • Lee, Wang-Sheng

    (Monash University)

Abstract
Promotions ordinarily involve higher wages and greater privileges; but they also often involve increased responsibility, accountability and work hours. Therefore, whether promotions are good for workers' wellbeing is an empirical question. Using high-quality panel data we estimate pre- and post-promotion effects on job attributes, physical health, mental health and life satisfaction, in an attempt at answering this question. We find that promotions substantially improve job security, pay perceptions and overall job satisfaction in the short term, and that promotions have short and longer term effects on job control, job stress, income and hours worked. However, despite these large effects on job attributes, we find that promotions have negligible effects on workers' health and happiness. Only mental health seems affected, with estimates suggesting significant deterioration two years after receiving a promotion. Thus, it seems the additional stress involved with promotions eventually outweighs the additional status, at least for the average worker.

Suggested Citation

  • Johnston, David W. & Lee, Wang-Sheng, 2012. "Extra Status and Extra Stress: Are Promotions Good for Us?," IZA Discussion Papers 6675, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6675
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    References listed on IDEAS

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    Cited by:

    1. Shvartsman, Elena & Beckmann, Michael, 2015. "Stressed by your job: What is the role of personnel policy?," Working papers 2015/15, Faculty of Business and Economics - University of Basel.
    2. Malmendier, Ulrike M. & Borgschulte, Mark & Guenzel, Marius & Liu, Canyao, 2020. "CEO Stress, Aging, and Death," CEPR Discussion Papers 14933, C.E.P.R. Discussion Papers.
    3. Adrian Chadi & Clemens Hetschko, 2018. "The magic of the new: How job changes affect job satisfaction," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 23-39, March.
    4. Shagini Udayar & Leandro Ivan Canzio & Ieva Urbanaviciute & Jonas Masdonati & Jérôme Rossier, 2021. "Significant Life Events and Career Sustainability: A Three-Wave Study," Sustainability, MDPI, vol. 13(23), pages 1-21, November.
    5. Michael Coelli & Domenico Tabasso, 2019. "Where are the returns to lifelong learning?," Empirical Economics, Springer, vol. 57(1), pages 205-237, July.
    6. Diriwaechter, Patric & Shvartsman, Elena, 2018. "The anticipation and adaptation effects of intra- and interpersonal wage changes on job satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 116-140.
    7. Tom Nicholas, 2023. "Status and mortality: Is there a Whitehall effect in the United States?," Economic History Review, Economic History Society, vol. 76(4), pages 1191-1230, November.
    8. Georgellis, Yannis & Clark, Andrew E. & Apergis, Emmanuel & Robinson, Catherine, 2022. "Occupational status and life satisfaction in the UK: The miserable middle?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 509-527.
    9. Jaime Ruiz-Tagle & Pablo Troncoso, 2018. "Labor Cost of Mental Health: Evidence from Chile," Working Papers wp468, University of Chile, Department of Economics.
    10. Hielke Buddelmeyer & Duncan McVicar & Mark Wooden, 2015. "Non-Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 256-275, April.
    11. Adrian Chadi & Clemens Hetschko, 2021. "How Job Changes Affect People's Lives — Evidence from Subjective Well‐Being Data," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 279-306, June.
    12. Krause-Pilatus, Annabelle, 2014. "Happiness and Work," IZA Discussion Papers 8435, Institute of Labor Economics (IZA).
    13. David W. Johnston & Olena Stavrunova, 2021. "Subjective Wellbeing Dynamics," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 518-529, December.
    14. Mujcic, Redzo, 2014. "Are fruit and vegetables good for our mental and physical health? Panel data evidence from Australia," MPRA Paper 59149, University Library of Munich, Germany.
    15. Grimani, Katerina, 2014. "Labor earnings and Psychological well-being: An Empirical Analysis," MPRA Paper 57098, University Library of Munich, Germany.
    16. Jason Sockin, 2022. "Show Me the Amenity: Are Higher-Paying Firms Better All Around?," CESifo Working Paper Series 9842, CESifo.
    17. Comfort F. Ricketts & Randall C. Campbell & Jon P. Rezek, 2019. "The Effects of Work Hours on Physical and Mental Health of Late Prime Age Men and Women," The American Economist, Sage Publications, vol. 64(2), pages 216-236, October.

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    More about this item

    Keywords

    status; stress; job satisfaction; promotion;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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