Time-in-Labour-Market and the Reference Group

Laetitia Hauret and Donald Williams

No 2018-02, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: This paper examines the relationship between the time spent in the labour market and the choice of the reference group for making relative income comparisons. The choice of reference group has been found in previous work to be an important determinant of various measures of well-being, including life-satisfaction, job-satisfaction, and satisfaction with pay. We estimate multinomial logit models of reference group determination using data from a survey of working conditions. The results suggest that a greater time spent in the labour market is associated with a higher probability of choosing local workers as the reference group for a sample of foreign “cross-border” workers. The results are consistent with studies of immigrant workers who are hypothesized to adjust their reference group over time.

Keywords: reference group; cross-border workers; job satisfaction (search for similar items in EconPapers)
Pages: 24 pages
Date: 2018-01
New Economics Papers: this item is included in nep-dcm and nep-hap
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2018-02

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