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Unfairness at work: Well-being and quits

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  • D'Ambrosio, Conchita
  • Clark, Andrew E.
  • Barazzetta, Marta

Abstract

We here consider the effect of the level of income that individuals consider to be fair for the job they do, which we take as measure of comparison income, on both subjective well-being and objective future job quitting. In six waves of German Socio-Economic Panel data, the extent to which own labour income is perceived to be unfair is significantly negatively correlated with subjective well-being, both in terms of cognitive evaluations (life and job satisfaction) and affect (the frequency of feeling happy, sad and angry). Perceived unfairness also translates into objective labour-market behaviour, with current unfair income predicting future job quits.

Suggested Citation

  • D'Ambrosio, Conchita & Clark, Andrew E. & Barazzetta, Marta, 2018. "Unfairness at work: Well-being and quits," Labour Economics, Elsevier, vol. 51(C), pages 307-316.
  • Handle: RePEc:eee:labeco:v:51:y:2018:i:c:p:307-316
    DOI: 10.1016/j.labeco.2018.02.007
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    More about this item

    Keywords

    Fair income; Subjective well-being; Quits; SOEP;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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