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Unfairness at work: Well-being and quits

Author

Listed:
  • Conchita D’Ambrosio

    (Université du Luxembourg)

  • Andrew E. Clark

    (Paris School of Economics - CNRS)

  • Marta Barazzetta

    (Université du Luxembourg)

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

  • Conchita D’Ambrosio & Andrew E. Clark & Marta Barazzetta, 2018. "Unfairness at work: Well-being and quits," Working Papers 459, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2018-459
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2018-459.pdf
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    References listed on IDEAS

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    1. Unfairness at Work: Well-Being and Quits
      by maximorossi in NEP-LTV blog on 2018-10-24 12:41:17

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    Cited by:

    1. Mohrenweiser, Jens & Pfeifer, Christian, 2019. "Firms' Wage Structures, Workers' Fairness Perceptions, Job Satisfaction and Turnover Intentions: Evidence from Linked Employer-Employee Data," IZA Discussion Papers 12821, Institute of Labor Economics (IZA).
    2. Nikolova, Milena & Cnossen, Femke, 2020. "What makes work meaningful and why economists should care about it," Labour Economics, Elsevier, vol. 65(C).
    3. Neugart, Michael & Yildirim, Selen, 2020. "What determines perceived income justice? Evidence from the German TwinLife study," Economics & Human Biology, Elsevier, vol. 36(C).
    4. Hovi Matti & Laamanen Jani-Petri, 2020. "Income, Aspirations and Subjective Well-being: International Evidence," Working Papers 2029, Tampere University, School of Management and Business, Economics.
    5. Cheng-Feng Cheng, 2020. "Revisiting Internal Marketing for the Determinants of Job (Dis)Satisfaction by Using Asymmetric Approach," Sustainability, MDPI, Open Access Journal, vol. 12(9), pages 1-15, May.

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    More about this item

    Keywords

    Fair income; subjective well-being; quits; SOEP.;
    All these keywords.

    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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