Internet Use and Job Satisfaction: Evidence from China

Abstract

We explore the causal effects of Internet use on job satisfaction using a sample of 83,012 Chinese labor force members aged 16–64 years from the China Family Panel Studies (CFPS) from 2010 to 2018. We use ordered logistic estimation and find that Internet use significantly increases job satisfaction by 3.2%. Heterogeneity analysis shows that the Internet has a more positive impact on those who are in urban areas and have higher incomes and higher education. Our results are robust after eliminating endogeneity using instrumental variables and solving the self-selection problem using the PSM method. Our mechanistic analysis leads to similar conclusions to mainstream research, where Internet use induces job satisfaction by increasing time efficiency and enhancing job autonomy. Specifically, shorter working hours boosted job satisfaction by approximately 0.3%, while working in informal places boosted job satisfaction by 5.4%. Thus, employers may consider encouraging employees to access the Internet.