Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227151 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13624
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the role of employees' identification to the employer for wage growth. We first show in a formal model that identification implies countervailing effects: Employees with higher identification are more valuable as they exert higher efforts, but have weaker bargaining positions, and less outside options as they search less. Analyzing a novel representative panel dataset, we find that stronger identification is associated with less job search and turnover. Workers that have higher identification exhibit significantly lower wage growth. In line with the model, this pattern tends to be reversed conditional on having obtained an external offer.
Subjects: 
wage
affective commitment
identity
turnover
job search
JEL: 
J31
M50
M52
Document Type: 
Working Paper

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