Does Job Design Make Workers Happy?

Using linked employer‐employee data for Finland we examine associations between job design, employee well‐being and job‐related stress. Three key findings stand out. First, in accordance with the theory of Karasek and Karasek and Theorell, job control and supervisory support are positively correlated with employee well‐being and negatively correlated with job‐related stress. Second, as predicted by theory, job demands are positively correlated with job‐related stress. Third, there is no association between job demands and employee well‐being and, contrary to expectations, neither job control nor supervisory support alleviate the negative relationship between job demands and job‐related stress. Our results confirm the importance of job design for employee well‐being.