A comparison of LISREL and two-stage least squares analysis of a hypothesized life-job satisfaction reciprocal relationship.

Abstract

The nature of the relationship between life satisfaction and job satisfaction was investigated using both two-stage least squares and the analysis of linear structural equations by LISREL. These techniques were chosen because both provide the possibility of evaluating causal relationships that are bidirectional. The results are consistent with a model that hypothesizes a reciprocal relationship between job and life domains. Further, results concerning estimates of structural parameters were consistent across analysis techniques. Some comparisons and cautionary remarks regarding the use of both techniques are presented. The interrelationship of job satisfaction and life satisfaction has long been an area of concern in the literature on job attitudes (for reviews see Kabanoff, 1980; Near, Rice, & Hunt, 1980; Rice, Near, & Hunt, 1980). For the most part, the nature of the relationship between job and life satisfaction has been portrayed in terms of three rival hypotheses: (a) that there is a positive relationship; (b) that there is a negative relationship; and (c) that there is no relationship. The first hypothesis (known as the generalized or spillover model) suggests that satisfaction in one domain of a person's life spills over into other areas. Thus, for example, workers who experience discontentment in their work do not compensate for this lack of psychological gratification by finding satisfaction in other aspects of their life, but rather are more likely to experience a greater incidence of unhappiness in nonwork activities. The spillover model suggests that the causal flow is either from job to life satisfaction or from life to job satisfaction, but not both simultaneously. In contrast, the second hypothesis (known as the compensation model) argues that individuals who have jobs deficient in need fulfillment will compensate for this deficiency by seeking out challenging and interesting nonwork activi

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