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The acceptance of earnings losses after voluntary mobility

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  • Schneck, Stefan

Abstract

Because rational individuals know that they cannot always get what they want, they are assumed to make appropriate adjustments. However, little is known about trade-off reasoning in labor market mobility decision making. The objective of this paper is to analyze the effect of commuting on the decision to voluntarily accept wage cuts. Application of German household data reveals that workers are more likely to accept lower wages when daily commuting expenses can be reduced. In other words, workers trade off amenities and monetary rewards when changing employers.

Suggested Citation

  • Schneck, Stefan, 2010. "The acceptance of earnings losses after voluntary mobility," Economics Discussion Papers 2010-21, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201021
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    References listed on IDEAS

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    Cited by:

    1. Tanja Hofmann & Johannes Martin, 2017. "Inter-firm Mobility and the Growth of Compensation Components," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 18(4), pages 399-423, October.

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    More about this item

    Keywords

    Mobility; wage cut; quit;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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