This article assesses the effect of labour market participation on life satisfaction. To reflect possible endogeneity in the decision to participate, a two-stage least squares estimation was implemented. First, an excluded instrument that affects the decision to participate is used and the existence of a weak instrument is rejected. To reflect the ordinal nature of the dependent variable, an ordered probit model with a binary endogenous explanatory variable was estimated. Thus, all the parameters of the model are estimated simultaneously. The results, which strongly indicate the presence of endogeneity in the decision to participate, show that participation has no impact on the level of life satisfaction. Regarding the rest of the explanatory variables included in the model, the results are consistent with previous empirical data.