Abstract
The influential empirical literature based on the job-demand-control theory finds a strong relationship between an employee’s control over their work (autonomy), the demands of the job, and negative health outcomes such as depression. Previous studies have neglected the possible endogeneity of job design. Accounting for endogeneity, we find that the negative impact of job demands on depression has been significantly underestimated, as have the benefits of increasing employee autonomy. Our results suggest the need for the reorganization of work is much greater than previously believed as the benefits to employee mental health are an order of magnitude larger.
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