Social Comparisons of Wage Increases and Job Satisfaction

Christian Grund and Maike Rubin ()
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Maike Rubin: RWTH Aachen University

No 10038, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We combine status quo and social comparison considerations and investigate whether relative wage increases in the sense of differences between individual wage increases and wage increases of comparable employees are related to managers' job satisfaction. Using a panel data set of managers in the German chemical industry, we indeed find first evidence. The relation between relative wage increases and job satisfaction is relevant for managers with lower absolute wage levels in particular.

Keywords: status quo preferences; social comparisons; reference points; job satisfaction; wage increases (search for similar items in EconPapers)
JEL-codes: J28 J31 M52 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2016-07
New Economics Papers: this item is included in nep-hrm
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Published - published in: Applied Economics, 2017, 49, 1345-1350

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Journal Article: Social comparisons of wage increases and job satisfaction (2017)
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