The Impact of Wage Increases on Job Satisfaction - Empirical Evidence and Theoretical Implications

No 387, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: The impact of wage increases on job satisfaction are explored. First, it is empirically established that current job satisfaction rises with absolute wage level as well as with wage increases. Second, a basic job satisfaction function is constructed based on the empirical results, and theoretical implications are analysed. It is shown that the myopic maximisation of such a function directly implies increasing and concave shaped age-earnings profiles.

Keywords: Job satisfaction; wage increases; habit formation; age-earnings profiles (search for similar items in EconPapers)
JEL-codes: J28 J30 M12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: Written 2001-11
View list of references View citations in EconPapers

Downloads: (external link)
ftp://repec.iza.org/RePEc/Discussionpaper/dp387.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA)
Address: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Contact information at EDIRC.
Series data maintained by Mark Fallak ().