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Relative wage as a determinant of pay satisfaction in Russia

Author

Listed:
  • Dubnovitskaya, Anastasia

    (Higher School of Economics, Moscow, Russian Federation)

  • Furmanov, Kirill

    (Higher School of Economics; CEMI RAS, Moscow, Russian Federation;)

Abstract

We use the RLMS-HSE data of Russian workers to investigate the relationship between pay satisfaction and both absolute and relative wages (relative wage is a ratio of the actual wage to the expected wage of an individual with a given vector of attribute). We found that the contribution of relative wages to pay satisfaction differs greatly for the relatively poor and rich workers (whose wages are lower and higher than the expected level respectively) with a greater effect of relative wages on pay satisfaction for relatively rich people rather than relatively poor ones.

Suggested Citation

  • Dubnovitskaya, Anastasia & Furmanov, Kirill, 2022. "Relative wage as a determinant of pay satisfaction in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 66, pages 99-117.
    • Handle: RePEc:ris:apltrx:0448
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    References listed on IDEAS

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    3. Mohsen Javdani & Brian Krauth, 2020. "Job satisfaction and co‐worker pay in Canadian firms," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 212-248, February.
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    More about this item

    Keywords

    satisfaction; relative wages; social comparison;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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