Arbeitspapier

Firms' Wage Structures, Workers' Fairness Perceptions, Job Satisfaction and Turnover Intentions: Evidence from Linked Employer-Employee Data

The paper uses novel data for Germany linking worker and establishment surveys with administrative social security data for all workers in the surveyed establishments. From these data, four variables are generated that describe a firm's wage structure and the positions of workers within it: (a) workers' own absolute wages, (b) workers' conditional internal reference wages within firms, (c) the conditional wage dispersion in firms, and (d) workers' conditional external reference wages across firms. Three empirical contributions are made: (1) the impact of firms' wage structures on workers' perceived wage fairness as an important organizational justice variable, (2) the impact of firms' wage structures on workers' job satisfaction and turnover intentions, and (3) the contribution of the fairness considerations on the overall effects of the wage structure variables on workers' job satisfaction and turnover intentions. The findings suggest that equity and social status considerations as well as altruistic preferences towards co-workers and inequality aversion are important, whereas the evidence for signal considerations is limited.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12821

Classification
Wirtschaft
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
General Welfare; Well-Being
Safety; Job Satisfaction; Related Public Policy
Wage Level and Structure; Wage Differentials
Labor Turnover; Vacancies; Layoffs
Personnel Economics: Compensation and Compensation Methods and Their Effects
Subject
income comparison
inequality
fairness
job satisfaction
turnover

Event
Geistige Schöpfung
(who)
Mohrenweiser, Jens
Pfeifer, Christian
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2019

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Mohrenweiser, Jens
  • Pfeifer, Christian
  • Institute of Labor Economics (IZA)

Time of origin

  • 2019

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