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My Wage is Unfair! Just a Feeling or Comparison with Peers?

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  • Schneck, Stefan

Abstract

This paper descriptively analyzes the nexus between income comparisons and perceptions of unfair pay. A German household survey reveals that individuals who perceive their wages as unfair earn significantly lower wages than fairly paid individuals with similar characteristics. This suggests that unfairness perceptions with respect to wages are based on sound income comparisons with peers. When asked about a subjectively fair amount in Euros, individuals tend to claim much higher wages than fairly paid individuals with identical characteristics.

Suggested Citation

  • Schneck, Stefan, 2013. "My Wage is Unfair! Just a Feeling or Comparison with Peers?," EconStor Preprints 70096, ZBW - German National Library of Economics.
  • Handle: RePEc:zbw:esprep:70096
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    File URL: https://www.econstor.eu/bitstream/10419/70096/1/DP_Schneck_2013.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pfeifer, Christian & Stephan, Gesine, 2018. "Why Women Don't Ask: Gender Differences in Fairness Perceptions of Own Wages and Subsequent Wage Growth," IZA Discussion Papers 11320, Institute for the Study of Labor (IZA).
    2. Christian Pfeifer, 2015. "Unfair Wage Perceptions and Sleep: Evidence from German Survey Data," SOEPpapers on Multidisciplinary Panel Data Research 789, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    Fairness; Wages;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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