Job Satisfaction and Co-worker Wages: Status or Signal? * This paper uses matched employer-employee panel data to show that individual job satisfaction is higher when other workers in the same establishment are better-paid. This runs contrary to a large literature which has found evidence of income comparisons in subjective well-being. We argue that the difference hinges on the nature of the reference group. We here use co-workers. Their wages not only induce jealousy, but also provide a signal about the worker's own future earnings. Our positive estimated coefficient on others' wages shows that this positive future earnings signal outweighs any negative status effect. This phenomenon is stronger for men, and in the private sector.
JEL Classification:C23, C25, D84, J28, J31, J33
Existing conceptualizations and measures of transformational and transactional leadership have unclear theoretical bases, confound leadership and its effects, and are not necessarily suitable for public organizations. Overcoming these problems is necessary to test how leadership affects performance. Many public administration scholars apply the concepts, emphasizing the need to ensure that the concepts are applicable in both public and private organizations. The article reconceptualizes transformational and transactional leadership and develops and tests revised measures that can be employed on employees and leaders, are robust in terms of repeated use by the same respondents, and are applicable to public and private organizations alike.
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