Artikel

Within-establishment wage inequality and satisfaction

The aim of this paper is to provide fresh empirical evidence on the mechanisms through which wage inequality affects worker satisfaction.Theoretically, the wages of others may affect workers' utility for two main reasons: Workers may derive well-being from their social status (the comparison effect) and/or they may use others' wages to help predict their own future wage (the information effect). The author tests both hypotheses. To do this, she models individual utility from pay as a function of a workers own wage and the earnings of all other workers within the same establishment, and she estimates the model using matched British employeremployee data. The author assumes incomplete information about others' wages. She finds that the comparison effect matters. Interestingly, she also provides some evidence on a positive relation between well-being and inequality. Her results are robust to different specifications and different definitions of the reference group.

Sprache
Englisch

Erschienen in
Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 8 ; Year: 2014 ; Issue: 2014-4 ; Pages: 1-21 ; Kiel: Kiel Institute for the World Economy (IfW)

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Safety; Job Satisfaction; Related Public Policy
Wage Level and Structure; Wage Differentials
Compensation Packages; Payment Methods
Thema
Satisfaction
comparison income
co-workers
inequality
incomplete information

Ereignis
Geistige Schöpfung
(wer)
Poggi, Ambra
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2014

DOI
doi:10.5018/economics-ejournal.ja.2014-4
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Poggi, Ambra
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2014

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