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Unfairness at Work: Well-Being and Quits

Author

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  • D'Ambrosio, Conchita

    () (University of Luxembourg)

  • Clark, Andrew E.

    () (Paris School of Economics)

  • Barazzetta, Marta

    () (University of 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

  • D'Ambrosio, Conchita & Clark, Andrew E. & Barazzetta, Marta, 2018. "Unfairness at Work: Well-Being and Quits," IZA Discussion Papers 11318, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11318
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    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Unfairness at Work: Well-Being and Quits
      by maximorossi in NEP-LTV blog on 2018-10-24 12:41:17

    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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