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," Hannover Economic Papers (HEP) dp-438, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; 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, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - 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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- Stefan Schneck, 2011.
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- Schneck, Stefan, 2014. "My Wage is Unfair! Just a Feeling or Comparison with Peers?," Review of Behavioral Economics, now publishers, vol. 1(3), pages 245-273, May.
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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner).
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