Job satisfaction and wage dispersion

Mari Kangasniemi

No 278, Working Papers from Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE

Abstract: This paper investigates the links between a number of subjective measures of worker wellbeing and within establishment wage dispersion. These may be linked either because wage dispersion influences the way in which individuals perceive their own relative and prospective income or because they are concerned about fairness in general. The analysis is based on a data set where the Quality of Work Survey is matched with register-based information on individuals and establishments. The results show that there is no significant overall association. Some significant relationships, however, can be found if the method of pay is assumed to be performance pay that is based on individual or group performance. The results also suggest that the question as to whether wages are public knowledge can be of importance.

Pages: 32 pages
Date: 2012-08-01
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