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Do higher wages come at a price?

  • Bryson, Alex
  • Barth, Erling
  • Dale-Olsen, Harald

Using linked employer–employee data for Britain we find that higher wages are associated with higher job satisfaction and higher job anxiety. The association between wages and non-pecuniary job satisfaction disappears with the inclusion of effort measures whereas the positive association between wages and job anxiety remains strong and significant providing no support for a compensating differential explanation, but rather for a ‘gift exchange’ type of reciprocal behaviour. No support is found for the proposition that within-workplace wage differentials are a source of job anxiety.

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File URL: http://www.sciencedirect.com/science/article/pii/S0167487011001620
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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 33 (2012)
Issue (Month): 1 ()
Pages: 251-263

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Handle: RePEc:eee:joepsy:v:33:y:2012:i:1:p:251-263
DOI: 10.1016/j.joep.2011.10.005
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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