Arbeitspapier

Employee Identification and Wages: On the Economics of "Affective Commitment"

We study the role of employees' identification to the employer for wage growth. We first show in a formal model that identification implies countervailing effects: Employees with higher identification are more valuable as they exert higher efforts, but have weaker bargaining positions, and less outside options as they search less. Analyzing a novel representative panel dataset, we find that stronger identification is associated with less job search and turnover. Workers that have higher identification exhibit significantly lower wage growth. In line with the model, this pattern tends to be reversed conditional on having obtained an external offer.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 13624

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Personnel Economics: General
Personnel Economics: Compensation and Compensation Methods and Their Effects
Thema
wage
affective commitment
identity
turnover
job search

Ereignis
Geistige Schöpfung
(wer)
Kampkötter, Patrick
Petters, Lea
Sliwka, Dirk
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kampkötter, Patrick
  • Petters, Lea
  • Sliwka, Dirk
  • Institute of Labor Economics (IZA)

Entstanden

  • 2020

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