Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33143
Authors: 
Wunder, Christoph
Schwarze, Johannes
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2084
Abstract: 
Using data from the German Socio-Economic Panel Study (GSOEP), it is shown that income comparison with persons who are better off has a clear impact on the job satisfaction of West German full-time employees. Two contrary effects can be identified. On the one hand, there is an aversion to disadvantageous regional income inequality, while on the other hand, individuals prefer inequality within their occupational group. The two effects are interpreted as envy and an information (or tunnel) effect, respectively. The analysis of income comparison with persons who are worse off suggests a prestige effect. However, downward comparison is of minor importance for job satisfaction.
Subjects: 
job satisfaction
income inequality
social comparison
envy
prestige
information effect (tunnel effect)
German Socio-Economic Panel Study (GSOEP)
JEL: 
D63
I31
D31
Document Type: 
Working Paper

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