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Relative Pay, Rank and Happiness: A Comparison Between Genders and Part- and Full-Time Employees

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  • Matthias Collischon

    (Friedrich-Alexander University Erlangen-Nürnberg)

Abstract

This paper investigates the effects of comparison pay on job and life satisfaction with longitudinal survey data from Germany. I use linear fixed effects models to account for unobserved heterogeneity and define the reference groups as individuals within the same occupation and industry. Men and women are expected to behave differently to comparison pay and are therefore investigated separately. Additionally, I investigate full- and part-time employees separately because the effect of relative positions in the reference group should affect life satisfaction for full-time employees only. The findings indicate that both relative pay and the individual rank within the respective reference group affect job and life satisfaction for full-time employed males only, while part-time employed females gain job satisfaction with increasing rank within their reference group. Part-time employees experience no change in their life satisfaction due to changes in either inequality dimension.

Suggested Citation

  • Matthias Collischon, 2019. "Relative Pay, Rank and Happiness: A Comparison Between Genders and Part- and Full-Time Employees," Journal of Happiness Studies, Springer, vol. 20(1), pages 67-80, January.
    • Handle: RePEc:spr:jhappi:v:20:y:2019:i:1:d:10.1007_s10902-017-9937-z
    DOI: 10.1007/s10902-017-9937-z
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    Cited by:

    1. La, Binh Thanh & Lim, Steven & Cameron, Michael P. & Tran, Tuyen Quang & Nguyen, Minh Thi, 2021. "Absolute income, comparison income and subjective well-being in a transitional country: Panel evidence from Vietnamese household surveys," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 368-385.
    2. Green, Francis, 2021. "Decent Work and The Quality of Work and Employment," GLO Discussion Paper Series 817, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Comparison pay; Rank-income hypothesis; Reference-wage hypothesis; Life satisfaction; Happiness;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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