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Title:Relative wage positions and quit behavior: new evidence from linked employer-employee data PDF Logo
Authors:Pfeifer, Christian
Schneck, Stefan
Issue Date:2010
Series/Report no.:University of Lüneburg Working Paper Series in Economics 163
Abstract:We use a large linked employer-employee data set to analyze the importance of relative wage positions in the context of individual quit decisions as an inverse measure of job satisfaction. Our main findings are: (1) Workers with higher relative wage positions within their firms are on average more likely to quit their jobs than workers with lower relative wage positions; and (2) workers, who experience a loss in their relative wage positions, are also more likely to have a wage cut associated with their job-to-job transition. The overall results therefore suggest that the status effect is dominated by an opposing signal effect.
Subjects:Comparison income
mobility
signaling
status
wages
JEL:D03
J31
J62
J63
M52
Document Type:Working Paper
Appears in Collections:Working Paper Series in Economics, Leuphana Universität Lüneburg

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