Image and Reality: the Case of Job Satisfaction

Abstract

This study makes a distinction between two types of utility. Experienced utility is defined as the job satisfaction derived from the present job, estimated by using a subjective evaluation of job satisfaction. Anticipated utility is defined as the individual’s anticipated job satisfaction before starting the job and it is studied by using a stated preference methodology known as conjoint analysis. The results suggest that the two utility concepts are different. Information about experienced utility is useful for the evaluation of well-being policies and the welfare effects of various employer strategies. Anticipated utility provides knowledge about the job search process.