Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69351
Authors: 
Grund, Christian
Martin, Johannes
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7097
Abstract: 
We assemble two reference point based concepts of utility in our empirical study: the own previous status quo and social comparisons. We explore the relative relevance of these concepts for total compensation as well as for different parts of the compensation package of managers. Making use of a unique panel data set of managers of the German chemical sector, we find that social comparisons of compensation indeed affect reported job satisfaction. Managers compare their total compensation (and fixed salary) with others in the chemical sector and report lower satisfaction scores when they earn less than similar managers. We find hardly any evidence for the relevance of status quo preferences.
Subjects: 
compensation
job satisfaction
reference points
social comparisons
status quo preferences
JEL: 
M5
J28
J31
Document Type: 
Working Paper

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