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Social comparisons of wage increases and job satisfaction

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  • Christian Grund
  • Maike Rubin

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.

Suggested Citation

  • Christian Grund & Maike Rubin, 2017. "Social comparisons of wage increases and job satisfaction," Applied Economics, Taylor & Francis Journals, vol. 49(14), pages 1345-1350, March.
  • Handle: RePEc:taf:applec:v:49:y:2017:i:14:p:1345-1350
    DOI: 10.1080/00036846.2016.1217311
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    8. Christian Grund & Dirk Sliwka, 2007. "Reference-Dependent Preferences and the Impact of Wage Increases on Job Satisfaction: Theory and Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(2), pages 313-335, June.
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    Cited by:

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    3. Yipeng Tang, 2020. "It’s not only Work and Pay: The Moderation Role of Teachers’ Professional Identity on their Job Satisfaction in Rural China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 15(4), pages 971-990, September.
    4. Burak Kağan Demirtaş, 2022. "Spillover effects of the minimum wage introduction based on horizontal fairness: A lab experiment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3370-3385, December.

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    More about this item

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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