The Role of Underemployment in Employee’s Overall Job Satisfaction: The Alabama Case.

Job satisfaction is an important measure of utility that employees derive from their jobs and is related to various features of the job such as pay, security, intrinsic values of work, working conditions, career growth opportunities, working hours, and the like. This paper analyzes the relationship between underemployment and overall job satisfaction among other personal and job characteristics of the workforce in Alabama using survey data from Alabama workforce development regions. A logistic model is used to analyze the determinants of job satisfaction in Alabama including underemployment. Estimation results show a negative relationship between underemployment and job satisfaction. Personal and work-related attributes such as education, age, work hours, and gender are also shown to influence employee job satisfaction.