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Job satisfaction and relative income in economic transition: Status or signal?: The case of urban China

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  • GAO, Wenshu
  • SMYTH, Russell

Abstract

We use two datasets for urban China to examine whether an increase in reference group income lowers or increases job satisfaction. The former is consistent with a status effect -- an increase in the income of others lowers my satisfaction because I feel jealous. The latter is consistent with a signal effect -- an increase in the income of others might make me jealous, but it also provides an information signal about my future prospects. When we use a single item indicator of job satisfaction we find no support for a status or signal effect; however, when we use a psychometrically valid instrument to measure job satisfaction, we find some support for the existence of a status effect. We consider the components of job satisfaction through which the status effect operates. We find that the status effect operates through satisfaction with co-workers, operating procedures, pay and supervision.

Suggested Citation

  • GAO, Wenshu & SMYTH, Russell, 2010. "Job satisfaction and relative income in economic transition: Status or signal?: The case of urban China," China Economic Review, Elsevier, vol. 21(3), pages 442-455, September.
  • Handle: RePEc:eee:chieco:v:21:y:2010:i:3:p:442-455
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    2. Linz, Susan J. & Chu, Yu-Wei Luke, 2013. "Weber, Marx, and work values: Evidence from transition economies," Economic Systems, Elsevier, vol. 37(3), pages 431-448.
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    4. Andrew E. Clark & Claudia Senik, 2010. "Will GDP growth increase happiness in developing countries?," PSE Working Papers halshs-00564985, HAL.
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    6. Madrigal, Lucia & Pagés, Carmen & Suaya, Agustina, 2016. "The Value of Social Security: Are Formal Jobs Better?," IZA Discussion Papers 9866, Institute of Labor Economics (IZA).
    7. Akay, Alpaslan & Bargain, Olivier & Zimmermann, Klaus F., 2012. "Relative concerns of rural-to-urban migrants in China," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 421-441.
    8. Aurelian-Petruș Plopeanu & Daniel Homocianu & Ionel Bostan & Ana-Iolanda Vodă & Nelu Florea, 2021. "Sustainable Careers: Reliability of Job Satisfaction Predictors for Employees Aged 50+. Evidence from Romanian Development Regions," Sustainability, MDPI, vol. 13(15), pages 1-23, July.
    9. Temesgen Kifle, 2014. "Do Comparison Wages Play a Major Role in Determining Overall Job Satisfaction? Evidence from Australia," Journal of Happiness Studies, Springer, vol. 15(3), pages 613-638, June.
    10. Xing Zhang & Micha Kaiser & Peng Nie & Alfonso Sousa-Poza, 2019. "Why are Chinese workers so unhappy? A comparative cross-national analysis of job satisfaction, job expectations, and job attributes," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-16, September.
    11. Mare Codruta & Dragos Cristian & Popa Irimie Emil & Span Georgeta Ancuta, 2012. "A Statistical Approach Of Perceptions Of Master Accountancy Graduates Concerning Early Career Experiences," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 944-948, July.
    12. Stavros A. Drakopoulos, 2020. "Pay Level Comparisons in Job Satisfaction Research and Mainstream Economic Methodology," Journal of Happiness Studies, Springer, vol. 21(3), pages 825-842, March.
    13. Ye Luo, 2016. "Gender and Job Satisfaction in Urban China: The Role of Individual, Family, and Job Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 289-309, January.
    14. Zhiming Cheng & Haining Wang & Russell Smyth, 2014. "Happiness and job satisfaction in urban China: A comparative study of two generations of migrants and urban locals," Urban Studies, Urban Studies Journal Limited, vol. 51(10), pages 2160-2184, August.
    15. Zhiming Cheng, 2014. "The Effects of Employee Involvement and Participation on Subjective Wellbeing: Evidence from Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 457-483, September.
    16. Jinan Zeidan, 2015. "Are Comparisons Luxuries? Subjective Poverty and Positional Concerns in Indonesia," AMSE Working Papers 1505, Aix-Marseille School of Economics, France.
    17. Jie Li & Wangshuai Wang & Gong Sun & Zhou Jiang & Zhiming Cheng, 2018. "Supervisor–Subordinate Guanxi and Job Satisfaction Among Migrant Workers in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(1), pages 293-307, August.
    18. Umakrishnan Kollamparambil, 2021. "Socio-Economic Inequality of Wellbeing: A Comparison of Switzerland and South Africa," Journal of Happiness Studies, Springer, vol. 22(2), pages 555-574, February.
    19. Han Yu, 2019. "The Impact of Self‐Perceived Relative Income on Life Satisfaction: Evidence from British Panel Data," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 726-745, October.
    20. Xiong, Ailun & Li, Hongyi & Westlund, Hans & Pu, Yongjian, 2017. "Social networks, job satisfaction and job searching behavior in the Chinese labor market," China Economic Review, Elsevier, vol. 43(C), pages 1-15.
    21. Yunchao Cai & Qian Li, 2024. "The Role of Relative Income in Determining Marital Satisfaction for Husband and Wife in China," Journal of Family and Economic Issues, Springer, vol. 45(1), pages 45-55, March.
    22. Jinan Zeidan, 2015. "Are Comparisons Luxuries? Subjective Poverty and Positional Concerns in Indonesia," Working Papers halshs-01114396, HAL.
    23. Cai, Shu & Wang, Jia, 2018. "Less advantaged, more optimistic? Subjective well-being among rural, migrant and urban populations in contemporary China," China Economic Review, Elsevier, vol. 52(C), pages 95-110.
    24. Alexander Newman & Ingrid Nielsen & Russell Smyth & Angus Hooke, 2015. "Examining the Relationship Between Workplace Support and Life Satisfaction: The Mediating Role of Job Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(3), pages 769-781, February.
    25. Vinod Mishra & Ingrid Nielsen & Russell Smyth & Alex Newman, 2014. "The Job Satisfaction-Life Satisfaction Relationship Revisited: Using the Lewbel Estimation Technique to Estimate Causal Effects Using Cross-Sectional Data," Monash Economics Working Papers 26-14, Monash University, Department of Economics.

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    More about this item

    Keywords

    Job satisfaction Relative income Urban China;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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