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Determinants of fair own wage perceptions: the moderating effect of works councils and performance evaluations

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  • Christian Pfeifer

Abstract

This empirical research note uses large-scale German survey data in order to analyse the determinants of fair wage perceptions. The probability to perceive the own wage as fair increases significantly with earned wages and is larger if a works council exists. Moreover, works councils and performance evaluations have a significant moderating effect on the link between the size of earned wages and fair wage perceptions.

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  • Christian Pfeifer, 2014. "Determinants of fair own wage perceptions: the moderating effect of works councils and performance evaluations," Applied Economics Letters, Taylor & Francis Journals, vol. 21(1), pages 47-50, January.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:1:p:47-50
    DOI: 10.1080/13504851.2013.837572
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    References listed on IDEAS

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    1. George A. Akerlof & Janet L. Yellen, 1990. "The Fair Wage-Effort Hypothesis and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 255-283.
    2. AndrewE. Clark & Nicolai Kristensen & Niels Westergård-Nielsen, 2009. "Job Satisfaction and Co-worker Wages: Status or Signal?," Economic Journal, Royal Economic Society, vol. 119(536), pages 430-447, March.
    3. Rees, Albert, 1993. "The Role of Fairness in Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 243-252, January.
    4. Paul, Maureen, 2006. "A cross-section analysis of the fairness-of-pay perception of UK employees," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 243-267, April.
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    Cited by:

    1. Mohrenweiser, Jens & Pfeifer, Christian, 2024. "Organisational justice, employee representation, and firm performance," GLO Discussion Paper Series 1499, Global Labor Organization (GLO).
    2. Christian Pfeifer, 2015. "UnfairWage Perceptions and Sleep: Evidence from German Survey Data," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 135(4), pages 413-428.
    3. Schröder, Carsten & König, Johannes & Fedorets, Alexandra & Goebel, Jan & Grabka, Markus M. & Lüthen, Holger & Metzing, Maria & Schikora, Felicitas & Liebig, Stefan, 2020. "The economic research potentials of the German Socio-Economic Panel study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 21(3), pages 335-371.
    4. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).

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