Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215217 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12821
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The paper uses novel data for Germany linking worker and establishment surveys with administrative social security data for all workers in the surveyed establishments. From these data, four variables are generated that describe a firm's wage structure and the positions of workers within it: (a) workers' own absolute wages, (b) workers' conditional internal reference wages within firms, (c) the conditional wage dispersion in firms, and (d) workers' conditional external reference wages across firms. Three empirical contributions are made: (1) the impact of firms' wage structures on workers' perceived wage fairness as an important organizational justice variable, (2) the impact of firms' wage structures on workers' job satisfaction and turnover intentions, and (3) the contribution of the fairness considerations on the overall effects of the wage structure variables on workers' job satisfaction and turnover intentions. The findings suggest that equity and social status considerations as well as altruistic preferences towards co-workers and inequality aversion are important, whereas the evidence for signal considerations is limited.
Subjects: 
income comparison
inequality
fairness
job satisfaction
turnover
JEL: 
D63
I31
J28
J31
J63
M52
Document Type: 
Working Paper

Files in This Item:
File
Size
335.21 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.