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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. Schneck, Stefan, 2011. "The Effect of Relative Standing on Considerations About Self-Employment," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover dp-486, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  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. Schneck, Stefan, 2013. "My Wage is Unfair! Just a Feeling or Comparison with Peers?," EconStor Preprints 70096, ZBW - German National Library of Economics.
  4. 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.

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