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 University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 163.
Length: 54 pages
Date of creation: Feb 2010
Date of revision:
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Web page: http://leuphana.de/institute/ivwl.html
comparison income; mobility; signaling; status; wages;
Other versions of this item:
- Pfeifer, Christian & Schneck, Stefan, 2010. "Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-438, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-13 (All new papers)
- NEP-BEC-2010-02-13 (Business Economics)
- NEP-LAB-2010-02-13 (Labour Economics)
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- Schneck, Stefan, 2011.
"The Effect of Relative Standing on Considerations About Self-Employment,"
Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover
dp-486, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Stefan Schneck, 2011. "The Effect of Relative Standing on Considerations about Self-Employment," SOEPpapers on Multidisciplinary Panel Data Research 426, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Sami Miaari & Asaf Zussman & Noam Zussman, 2012.
"Ethnic conflict and job separations,"
Journal of Population Economics,
Springer, vol. 25(2), pages 419-437, January.
- Schneck, Stefan, 2013. "My Wage is Unfair! Just a Feeling or Comparison with Peers?," EconStor Preprints 70096, ZBW - German National Library of Economics.
- Robert Wagner & Thomas Zwick, 2012.
"How Acid are Lemons? Adverse Selection and Signalling for Skilled Labour Market Entrants,"
Economics of Education Working Paper Series
0071, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Feb 2012.
- Wagner, Robert & Zwick, Thomas, 2012. "How acid are lemons? Adverse selection and signalling for skilled labour market entrants," ZEW Discussion Papers 12-014, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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