Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30212 
Year of Publication: 
2010
Series/Report no.: 
Working Paper Series in Economics No. 163
Publisher: 
Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre, Lüneburg
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

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