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Unfairness at work: Well-being and quits

Author

Listed:
  • Conchita d'Ambrosio

    (uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg)

  • Marta E Barazzetta

    (uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg)

  • Andrew E. Clark

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We here consider the effect of the level of income that individuals consider to be fair for the job they do, which we take as measure of comparison income, on both subjective well-being and objective future job quitting. In six waves of German Socio-Economic Panel data, the extent to which own labour income is perceived to be unfair is significantly negatively correlated with subjective well-being, both in terms of cognitive evaluations (life and job satisfaction) and affect (the frequency of feeling happy, sad and angry). Perceived unfairness also translates into objective labour-market behaviour, with current unfair income predicting future job quits.

Suggested Citation

  • Conchita d'Ambrosio & Marta E Barazzetta & Andrew E. Clark, 2018. "Unfairness at work: Well-being and quits," PSE-Ecole d'économie de Paris (Postprint) halshs-01884163, HAL.
    • Handle: RePEc:hal:pseptp:halshs-01884163
    DOI: 10.1016/j.labeco.2018.02.007
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Unfairness at Work: Well-Being and Quits
      by maximorossi in NEP-LTV blog on 2018-10-24 12:41:17

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    1. Mohrenweiser, Jens & Pfeifer, Christian, 2019. "Firms' Wage Structures, Workers' Fairness Perceptions, Job Satisfaction and Turnover Intentions: Evidence from Linked Employer-Employee Data," IZA Discussion Papers 12821, Institute of Labor Economics (IZA).
    2. Nikolova, Milena & Cnossen, Femke, 2020. "What makes work meaningful and why economists should care about it," Labour Economics, Elsevier, vol. 65(C).
    3. MAGAZZINO, Cosimo & LEOGRANDE, Angelo, 2021. "Subjective Well-Being In Italian Regions: A Panel Data Approach," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 21(1), pages 1-18.
    4. Jens Mohrenweiser & Christian Pfeifer, 2023. "Wage Structures, Fairness Perceptions, and Job Satisfaction: Evidence from Linked Employer-Employee Data," Journal of Happiness Studies, Springer, vol. 24(7), pages 2291-2308, October.
    5. Hovi Matti & Laamanen Jani-Petri, 2020. "Income, Aspirations and Subjective Well-being: International Evidence," Working Papers 2029, Tampere University, Faculty of Management and Business, Economics.
    6. Neugart, Michael & Yildirim, Selen, 2020. "What determines perceived income justice? Evidence from the German TwinLife study," Economics & Human Biology, Elsevier, vol. 36(C).
    7. Cheng-Feng Cheng, 2020. "Revisiting Internal Marketing for the Determinants of Job (Dis)Satisfaction by Using Asymmetric Approach," Sustainability, MDPI, vol. 12(9), pages 1-15, May.

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    More about this item

    Keywords

    Fair income; Subjective well-being; Quits; SOEP;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • 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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