Job satisfaction of Indonesian workers: An analysis and forecasting using STAR model
-
DOIhttp://dx.doi.org/10.21511/ppm.22(2).2024.34
-
Article InfoVolume 22 2024, Issue #2, pp. 443-452
- 430 Views
-
136 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study examines and forecasts job satisfaction of Indonesian workers from 2000 to 2022 using the happiness index and its influencing factors. The Smooth Transition Autoregressive (STAR) method is employed to analyze the non-linear relationship between the happiness index and worker welfare, performance, and motivation, which are measured by per capita consumption, GDP per capita, and labor force participation. The inflation rate serves as the transition variable. The findings reveal positive effects of worker welfare and performance and a negative effect of work motivation on the happiness index. A significant threshold effect is also observed, which varies with the inflation rate. The study predicts an increase in the happiness index from 2023 to 2026, indicating improved job satisfaction post-COVID-19. This study contributes to the literature by employing a novel method and providing empirical evidence from Indonesia, a developing country with a large and diverse workforce, before and after the COVID-19 pandemic. The study acknowledges some limitations and implications for future research, such as the use of aggregate data, the linear assumption, and the lack of control variables. The paper underscores the need for policymakers and practitioners to enhance worker welfare and performance and to mitigate the negative impact of work motivation. It also highlights the need for workers and society to elevate the happiness index as a measure of job satisfaction and well-being and to address the economic and social challenges and opportunities that affect workers’ quality of life.
- Keywords
-
JEL Classification (Paper profile tab)C22, E31, I31, J28, O15
-
References50
-
Tables10
-
Figures0
-
- Table 1. Definition, measurement, and variables’ data sources
- Table 2. Stationarity test
- Table 3. Non-linearity test
- Table 4. ESTAR model estimation results using the non-linear least squares (NLS) method and maximum likelihood (ML) method
- Table 5. Wald test value
- Table 6. Diagnostic test results using autocorrelation test, heteroscedasticity test, normality test, and Ramsey RESET test
- Table 7. Forecasting from ESTAR estimates using in-sample data or out-of-sample data, using recursive methods and direct methods
- Table 8. ESTAR estimation forecasting results using the direct method
- Table 9. ESTAR forecasting performance evaluation
- Table 10. ESTAR model estimation results using the maximum likelihood method
-
- Adenan, M. (2021). Reflection of bubbles assets during the global financial crisis facing Covid-19 in Indonesia. Academy of Strategic Management Journal, 20(1), 1-14.
- Aknin, L. B., & Whillans, A. V. (2021). Helping and happiness: A review and guide for public policy. Social Issues and Policy Review, 15(1), 3-34.
- Anwar, A. F., Asnun, A. P., & Wahab, A. (2021). Measuring the impact of inclusive economic growth; Empirical study of SDGs in Indonesia. Technium Social Sciences Journal, 25(1), 192-218.
- Audi, M., & Ali, A. (2023). The role of environmental conditions and purchasing power parity in determining quality of life among big Asian cities. International Journal of Energy Economics and Policy, 13(3), 292-305.
- Baquero, A. (2022). Job insecurity and intention to quit: The role of psychological distress and resistance to change in the UAE hotel industry. International Journal of Environmental Research and Public Health, 19(20), Article 13629.
- Bawono, S., Zainuri, Z., & Wilantari, R. N. (2019). Dynamics of real exchange rate and three financial crisis: Purchasing power parity relative approach in Indonesia and Thailand. International Journal of Scientific & Technology Research, 8(5), 58-62.
- Bhende, P., Mekoth, N., Ingalhalli, V., & Reddy, Y. V. (2020). Quality of work life and work-life balance. Journal of Human Values, 26(3), 256-265.
- Chien, G. C., Mao, I., Nergui, E., & Chang, W. (2020). The effect of work motivation on employee performance: Empirical evidence from 4-star hotels in Mongolia. Journal of Human Resources in Hospitality & Tourism, 19(4), 473-495.
- Dahliah, D., & Nur, A. N. (2021). The influence of unemployment, human development index and gross domestic product on poverty level. Golden Ratio of Social Science and Education, 1(2), 95-108.
- De Clercq, D., Haq, I. U., & Azeem, M. U. (2020). When does job dissatisfaction lead to deviant behaviour? The critical roles of abusive supervision and adaptive humour. Australian Journal of Management, 45(2), 294-316.
- Di Stefano, G., Scrima, F., & Parry, E. (2019). The effect of organizational culture on deviant behaviors in the workplace. The International Journal of Human Resource Management, 30(17), 2482-2503.
- Dorta-Afonso, D., González-de-la-Rosa, M., Garcia-Rodriguez, F. J., & Romero-Domínguez, L. (2021). Effects of high-performance work systems (HPWS) on hospitality employees’ outcomes through their organizational commitment, motivation, and job satisfaction. Sustainability, 13(6), Article 3226.
- Dziuba, S. T., Ingaldi, M., & Zhuravskaya, M. (2020). Employees’ job satisfaction and their work performance as elements influencing work safety. System Safety: Human-Technical Facility-Environment, 2(1), 18-25.
- García-Buades, M. E., Peiró, J. M., Montañez-Juan, M. I., Kozusznik, M. W., & Ortiz-Bonnín, S. (2020). Happy-productive teams and work units: A systematic review of the ‘happy-productive worker thesis’. International Journal of Environmental Research and Public Health, 17(1), Article 69.
- Juliannisa, I. A., & Artino, A. (2022). Determinants analysis of GDP Per capita’s growth and state regulations of 7 ASEAN countries. International Journal of Research in Business and Social Science, 11(2), 195-206.
- Jumady, E., & Lilla, L. (2021). Antecedent and consequence the human resources management factors on civil servant performance. Golden Ratio of Human Resource Management, 1(2), 104-116.
- Kadir, R. D., & Ismail, J. (2020). Macroeconomic indicators and human development index in ten lowest medium in Indonesia: An Islamic perspective. Journal of Research in Business, Economics, and Education, 2(1), 339-347.
- Kane, A., Yarker, J., & Lewis, R. (2021). Measuring self-confidence in workplace settings: A conceptual and methodological review of measures of self-confidence, self-efficacy and self-esteem. International Coaching Psychology Review, 16(1), 67-77.
- Kanto, M., & Sjahruddin, H. (2020). How psychological capital mediates the relationship between thriving at work and happiness at work? A cross-sectional research for tourism sector of Indonesia. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(6), 1798-1812.
- Khairani, A. Z., Ahmad, N. S., & Sutatminingsih, R. (2022). Assessing social-psychological functioning between Malaysian and Indonesian undergraduates: A Rasch model analysis. Journal of Applied Research in Higher Education, 14(2), 714-727.
- Kim, H. S., & Kim, M. (2020). Viewing sports online together? Psychological consequences on social live streaming service usage. Sport Management Review, 23(5), 869-882.
- Kim, M., & Beehr, T. A. (2022). The role of organization-based self-esteem and job resources in promoting employees’ job crafting behaviors. The International Journal of Human Resource Management, 33(19), 3822-3849.
- Kustiawan, U., Marpaung, P., Lestari, U. D., & Andiyana, E. (2022). The effect of affective organizational commitment, job satisfaction, and employee engagement on job happiness and job performance on manufacturing company in Indonesia. WSEAS Transactions on Business and Economics, 19(52), 573-591.
- Lee, Y. S., & Liu, W. K. (2021). The moderating effects of employee benefits and job burnout among the employee loyalty, corporate culture and employee turnover. Universal Journal of Management, 9(2), 62-69.
- Liu, F., Li, L., Zhang, Y., Ngo, Q. T., & Iqbal, W. (2021). Role of education in poverty reduction: macroeconomic and social determinants form developing economies. Environmental Science and Pollution Research, 28(1), 63163-63177.
- Maksum, A. (2021). Indonesian post-migrant workers: A challenging problem for human security. Social Sciences & Humanities Open, 4(1), Article 100223.
- Mujiono, M. N. (2021). The shifting role of accountants in the era of digital disruption. International Journal of Multidisciplinary: Applied Business and Education Research, 2(11), 1259-1274.
- Nazah, N., Duasa, J., & Arifin, M. I. (2021). Fertility and female labor force participation in Asian countries; Panel ARDL approach. Jurnal Ekonomi & Studi Pembangunan, 22(2), 272-288.
- Nguyen, P. T., Yandi, A., & Mahaputra, M. R. (2020). Factors that influence employee performance: Motivation, leadership, environment, culture organization, work achievement, competence and compensation (A study of human resource management literature studies). Dinasti International Journal of Digital Business Management, 1(4), 645-662.
- Nizeyumukiza, E., Cilik Pierewan, A., Ndayambaje, E., & Ayriza, Y. (2020). Trust and well-being: Evidence from Indonesia. Asian Social Work and Policy Review, 14(3), 148-157.
- Paais, M., & Pattiruhu, J. R. (2020). Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics and Business, 7(8), 577-588.
- Patria, B. (2022). Modeling the effects of physical activity, education, health, and subjective wealth on happiness based on Indonesian national survey data. BMC Public Health, 22(1), Article 959.
- Pilipiec, P., Groot, W., & Pavlova, M. (2021). The effect of an increase of the retirement age on the health, well-being, and labor force participation of older workers: A systematic literature review. Journal of Population Ageing, 14(1), 271-315.
- Purwanto, A. (2020). Effect of compensation and organization commitment on tournover intention with work satisfaction as intervening variable in Indonesian industries. Systematic Reviews in Pharmacy, 11(9), 287-298.
- Renaldo, N., Sudarno, S., & Marice, H. B. (2020). The improvement of generation Z financial well-being in Pekanbaru. Jurnal Manajemen Dan Kewirausahaan, 22(2), 142-151.
- Saida, Z. Z., Siti, A., Caisar, D. D., & Musdalifah, A. (2021). Spurring economic growth in terms of happiness, human development, competitiveness and global innovation: The ASEAN case. ASEAN Journal on Science and Technology for Development, 38(1), 1-6.
- Samborska, O. (2020). Monitoring of indicators of socio-economic development of Ukraine. Three Seas Economic Journal, 1(4), 117-125.
- Sari, F., Sudiarditha, I. K. R., & Susita, D. (2021). Organizational culture and leadership style on employee performance: Its effect through job satisfaction. The International Journal of Social Sciences World (TIJOSSW), 3(2), 98-113.
- Sasongko, B., Bawono, S., & Prabowo, B. H. (2021). The economic performance of china in trade war: The case study of three global economic crises in 1997–2020. In Environmental, Social, and Governance Perspectives on Economic Development in Asia (pp. 1-11). Emerald Publishing Limited.
- Seubert, C., Hopfgartner, L., & Glaser, J. (2021). Living wages, decent work, and need satisfaction: An integrated perspective. European Journal of Work and Organizational Psychology, 30(6), 808-823.
- Silva Munar, J. L., De Juana-Espinosa, S., Martínez-Buelvas, L., Vecchiola Abarca, Y., & Orellana Tirado, J. (2020). Organizational happiness dimensions as a contribution to sustainable development goals: A prospective study in higher education institutions in Chile, Colombia and Spain. Sustainability, 12(24), Article 10502.
- Spielman, S. E., Tuccillo, J., Folch, D. C., Schweikert, A., Davies, R., Wood, N., & Tate, E. (2020). Evaluating social vulnerability indicators: Criteria and their application to the Social Vulnerability Index. Natural Hazards, 100(1), 417-436.
- Sukawati, T. B. W., & Suwandana, I. G. M. (2021). Effect of physical work environment, workload, and compensation on employee loyalty at Visesa Ubud Resort. American Journal of Humanities and Social Sciences Research (AJHSSR), 5(2), 399-408.
- Sutarto, A. P., Wardaningsih, S., & Putri, W. H. (2021). Work from home: Indonesian employees’ mental well-being and productivity during the COVID-19 pandemic. International Journal of Workplace Health Management, 14(4), 386-408.
- Widarni, E. L., & Bawono, S. (2022). Technology investment, consumption, and economic growth in poverty eradication efforts in Indonesia. In Modeling Economic Growth in Contemporary Indonesia (pp. 217-223). Emerald Publishing Limited.
- Wijaya, A., Kasuma, J., & Darma, D. C. (2021). Labor force and economic growth based on demographic pressures, happiness, and human development: Empirical from Romania. Journal of Eastern European and Central Asian Research (JEECAR), 8(1), 40-50.
- Winasis, S., Djumarno, S. R., Rijanto, S., & Ariyanto, E. (2020). The impact of the transformational leadership climate on employee job satisfaction during the COVID-19 pandemic in the Indonesian banking industry. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(6), 7732-7742.
- Wong, K. P., Lee, F. C. H., Teh, P. L., & Chan, A. H. S. (2021). The interplay of socioecological determinants of work-life balance, subjective wellbeing and employee wellbeing. International Journal of Environmental Research and Public Health, 18(9), Article 4525.
- Zacharias, T., Rahawarin, M. A., & Yusriadi, Y. (2021). Cultural reconstruction and organization environment for employee performance. Journal of Ethnic and Cultural Studies, 8(2), 296-315.
- Zahra, D. R., & Anoraga, P. (2021). The influence of lifestyle, financial literacy, and social demographics on consumptive behavior. The Journal of Asian Finance, Economics and Business, 8(2), 1033-1041.