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The B.E. Journal of Economic Analysis & Policy

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Ed. by Auriol, Emmanuelle / Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias / Zulehner, Christine

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Volume 17, Issue 3


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Does Job Satisfaction Increase Sales and Customer Satisfaction? Evidence from Retail Banking in South Korea

Ricard Gil / Myongjin Kim
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  • Economics Department, University of Oklahoma, 308 Cate center drive, Norman, Oklahoma 73019-0390 USA
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/ Inhyouk Koo
Published Online: 2017-07-25 | DOI: https://doi.org/10.1515/bejeap-2016-0208


This paper estimates the causal relationship between job satisfaction and worker productivity. Using personnel records from a retail bank in South Korea, we show that branch productivity is positively associated to average job satisfaction, but negatively to its standard deviation. We address endogeneity concerns using IV strategies and find that while higher job satisfaction may increase short term productivity through sales to existing customers, excessive sales to existing customers may hurt customer satisfaction and willingness to recommend in the long run. Our findings suggest that average job satisfaction and its dispersion are equally important to understand worker productivity.

Keywords: productivity; job satisfaction; customer satisfaction; word of mouth

JEL Classification: J24; J28; M50


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About the article

Published Online: 2017-07-25

Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 17, Issue 3, 20160208, ISSN (Online) 1935-1682, DOI: https://doi.org/10.1515/bejeap-2016-0208.

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