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Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data

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Author Info

  • Christian Pfeifer

    ()
    (Institute of Economics, Leuphana University of Lüneburg, Germany)

  • Stefan Schneck

    ()
    (Institute of Empirical Economic Research, Leibniz Universität Hannover)

Abstract

We 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 Info

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 163.

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Length: 54 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:lue:wpaper:163

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Web page: http://leuphana.de/institute/ivwl.html

Related research

Keywords: comparison income; mobility; signaling; status; wages;

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Cited by:
  1. 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).
  2. Sami Miaari & Asaf Zussman & Noam Zussman, 2012. "Ethnic conflict and job separations," Journal of Population Economics, Springer, vol. 25(2), pages 419-437, January.
  3. 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.
  4. Schneck, Stefan, 2014. "My Wage is Unfair! Just a Feeling or Comparison with Peers?," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 245-273.
  5. Gerlach, Knut & Hübler, Olaf & Stephan, Gesine, 2011. "Beschäftigung zwischen Mobilität und Stabilität : empirische Befunde und wirtschaftspolitische Folgerungen," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 44(1/2), pages 91-102.

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