Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data
AbstractWe use a large linked employer-employee data set to analyze the importance of relative wage positions in the context of individual quit decisions as an inverse measure of job satisfaction. Our main findings are: (1) Workers with higher relative wage positions within their firms are on average more likely to quit their jobs than workers with lower relative wage positions; and (2) workers, who experience a loss in their relative wage positions, are also more likely to have a wage cut associated with their job-to-job transition. The overall results therefore suggest that the status effect is dominated by an opposing signal effect.
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Bibliographic InfoPaper provided by Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover with number dp-438.
Length: 49 pages
Date of creation: Feb 2010
Date of revision:
comparison income; mobility; signaling; status; wages;
Other versions of this item:
- Christian Pfeifer & Stefan Schneck, 2010. "Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data," Working Paper Series in Economics 163, University of Lüneburg, Institute of Economics.
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
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