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Job Satisfaction and Reference Wage: Evidence for a Developing Country

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  • Rodrigo Montero

    () (Facultad de Economía y Empresa, Universidad Diego Portales)

  • Diego Vasquez

    (Facultad de Economía y Empresa, Universidad Diego Portales)

Abstract

Using Chilean data we present evidence about the relationship between job satisfaction, own wage, and reference group wage. We conducted a semi-nonparametric estimation of extended ordered probit models in order to identify the determinants of job satisfaction. Our main result indicates that a 10 % increase in the reference group wage would need to be compensated for by a 24.9 % increase in the own wage to give the same level of job satisfaction. This result shows the enormous importance of the reference group wage for job satisfaction. Copyright Springer Science+Business Media Dordrecht 2015
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rodrigo Montero & Diego Vasquez, 2014. "Job Satisfaction and Reference Wage: Evidence for a Developing Country," Working Papers 48, Facultad de Economía y Empresa, Universidad Diego Portales.
  • Handle: RePEc:ptl:wpaper:48
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    References listed on IDEAS

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    1. George A. Akerlof & Janet L. Yellen, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 255-283.
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    6. Rodrigo Montero & Tomás Rau, 2015. "Part-time Work, Job Satisfaction and Well-being: Evidence from a Developing OECD Country," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 370-385, April.
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    15. Rodrigo Montero & Diego Vásquez, 2015. "Job Satisfaction and Reference Wages: Evidence for a Developing Country," Journal of Happiness Studies, Springer, vol. 16(6), pages 1493-1507, December.
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    Cited by:

    1. HAURET Laetitia & WILLIAMS Donald R., 2018. "Time-in-Labour-Market and the Reference Group," LISER Working Paper Series 2018-02, LISER.
    2. HAURET Laetitia & WILLIAMS Donald R., 2017. "Choice of colleagues as reference group for wage comparison: does group composition matter?," LISER Working Paper Series 2017-10, LISER.
    3. repec:iza:izawol:journl:y:2017:n:372 is not listed on IDEAS
    4. Rodrigo Montero & Diego Vásquez, 2015. "Job Satisfaction and Reference Wages: Evidence for a Developing Country," Journal of Happiness Studies, Springer, vol. 16(6), pages 1493-1507, December.
    5. Gevrek, Deniz & Spencer, Marilyn & Hudgins, David & Chambers, Valrie, 2017. "I Can't Get No Satisfaction: The Power of Perceived Differences in Employee Retention and Turnover," IZA Discussion Papers 10577, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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