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Measuring the Selection of Pay Referents: A Methodological Analysis of the Questions on Pay Referents in the 2008 and 2009 SOEP Pretest Modules

Author

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  • Simone Schneider
  • Jürgen Schupp

Abstract

Income comparisons are among the key mechanisms used to explain satisfaction and happiness, among other outcomes. Yet progress on the questions of who people use as social referents and whether differential selection patterns exist can only be made based on valid and reliable measures of pay referents included in large-scale population surveys. The German Socio-Economic Panel Study (SOEP) is pursuing this task through two questions on pay referents introduced in the 2008 and 2009 pretest modules of the SOEP. This paper analyses the quality of the two questions on pay referents in the 2008 module and discusses potential for improvement through modifications of the questions in the 2009 module. The paper concludes that the difficulties in answering questions on pay referents were not completely overcome in the 2009 pretest. To provide more solid evidence on potential biases in response behavior, the paper suggests the inclusion of reliable instruments for measuring personal dispositions.

Suggested Citation

  • Simone Schneider & Jürgen Schupp, 2010. "Measuring the Selection of Pay Referents: A Methodological Analysis of the Questions on Pay Referents in the 2008 and 2009 SOEP Pretest Modules," Data Documentation 48, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwddc:dd48
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.354673.de/diw_datadoc_2010-048.pdf
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    Citations

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    Cited by:

    1. Simone Schneider & Jürgen Schupp, 2014. "Individual Differences in Social Comparison and its Consequences for Life Satisfaction: Introducing a Short Scale of the Iowa–Netherlands Comparison Orientation Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 767-789, January.
    2. Goerke, Laszlo & Pannenberg, Markus, 2013. "Keeping up with the Joneses: Income Comparisons and Labour Supply," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80033, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    income comparisons; relative income; reference groups; SOEP;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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