Job satisfaction and relative income in economic transition: Status or signal?

Gao, Wenshu; Smyth, Russell

doi:10.1016/j.chieco.2010.04.002

Cited by 35 publications

(17 citation statements)

References 83 publications

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“…When the effect is positive, peers' earnings are said to exhibit a “signal effect” (higher earnings of reference group provides information about worker's own prospects); when negative, a “status effect” (higher earnings of reference group makes worker jealous). Clark, Kristensen, and Westergard‐Nielsen (), using data from British workers, and Senik (), using data from Russian workers, find that higher earnings of others at the workplace contribute positively to own job satisfaction, while Gao and Smyth () find evidence among urban workers in China that the status effect dominates. Panos and Theodossiou () argue that the effect of comparison earnings may be positive or negative depending upon individual‐specific financial conditions and the country's economic and political environment.…”

Section: Background and Motivationmentioning

confidence: 99%

“…Following Herzberg, Mausner, and Snyderman (), rewards are categorized as extrinsic if they are received for performing the job (pay, promotion, praise from supervisor, for example) and intrinsic if they are associated with the job itself (such as chance to develop new skills or accomplish something worthwhile). While studies conducted by psychologists tend to focus on intrinsic rewards, studies conducted by economists tend to focus on extrinsic rewards: expected income (Clark, Kristensen, and Westergard‐Nielsen ; Gao and Smyth ; Senik , ; for example) or expected promotions (Kosteas ). Missing are empirical studies that analyze the link between job satisfaction and intrinsic–extrinsic rewards.…”

Section: Introductionmentioning

confidence: 99%

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What Makes Workers Happy? Anticipated Rewards and Job Satisfaction

Linz

Semykina

2012

Industrial Relations

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Using data collected from over 9400 employees in Armenia, Kazakhstan, Kyrgyzstan, Russia, and Serbia, across a wide variety of workplaces and sectors, we identify the extrinsic and intrinsic rewards that workers desire and expectations of receiving these rewards. We use ordered probit regression analysis to evaluate the association between anticipated rewards and job satisfaction, hypothesizing that reward desirability matters most for extrinsic rewards linked to numeric values. Data strongly support our hypothesis in the case of expected job security; limited support is found in the case of expected promotion. For non-numeric extrinsic and intrinsic rewards, a strong positive link between job satisfaction and the reward variables often is observed, even if the expected reward is not highly desired. While own earnings typically are positively linked to job satisfaction, peers' earnings may be positively (Kazakhstan, Armenia, Russia) or negatively (Krygyzstan, Serbia) linked to job satisfaction, but not always statistically significant.

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Section: Background and Motivationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

What Makes Workers Happy? Anticipated Rewards and Job Satisfaction

Linz

Semykina

2012

Industrial Relations

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“…Job satisfaction can be disaggregated further into its components, and a rare study of such kind for an economy in transitional settings is based on two Chinese samples (Gao and Smyth, 2009) and capture its different dimensions. This multidimensional approach showed that there were neither status, nor informational/signal effects of average firm wage on the set of nine measures related to job satisfaction in Shanghai (job satisfaction depends on the own level of wage).…”

Section: Job Satisfactionmentioning

confidence: 99%

Surveying transitional experience and subjective well-being: Income, work, family

Selezneva

2011

Economic Systems

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Working PaperSurveying transitional experience and subjective well-being: Income, work, family Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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“…Although there is some empirical evidence supporting the signal effect in industrialized countries, like in UK and Denmark (Theodossiou and Panos, 2007;Clark, Kristensen, and Westergaard-Nielsen, 2009), the vast majority of the relevant empirical literature have discovered the presence of status effect rather than the signal effect. 4 Similar status effects have been found even for a transitional economy like China (GAO and Smyth, 2010;Clark and Senik, 2014). In a more general framework of life satisfaction, Clark and Senik (2010) find that the well-being effect of comparison income is predominantly negative which means that most people compare upward and that the signal effect does not outweigh the status effect.…”

Section: The Theoretical Basis Of Relative Paymentioning

confidence: 54%

Pay Level Comparisons in Job Satisfaction Research and Mainstream Economic Methodology

Drakopoulos

2019

J Happiness Stud

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Although social scientists have been investigating the nature and impact of job satisfaction for many decades, economists only started to investigate job satisfaction systematically in the late 1980's. Almost from the first systematic studies of job satisfaction by economists, the research potential of the notion of pay level comparisons was realized. The idea of pay level comparisons in job satisfaction has proven particularly useful also because it has important implications for a number of standard theoretical and economic policy results. However, the inclusion of the variable of comparison wage in job satisfaction and the resulting supporting empirical findings, are in sharp contrast to the orthodox approach, given that in mainstream economic theory an individuals' utility is assumed to be a function of absolute income only. Despite the important theoretical and policy implications, mainstream economic theory has not paid much heed to the job satisfaction conceptual formulations and empirical findings. The paper argues that there are methodological reasons for this state of affairs which seem to be linked to the subjective well-being research in general, and to the job satisfaction literature in particular. A strong mistrust against the method of stated preferences and the inherent methodological bias against the integration of psychological findings, are suggested as the two prime reasons. Although a few prominent figures in job satisfaction research have realized the mainstream methodological attitude, it is necessary that job satisfaction specialists should consider more seriously the basic components of mainstream economic methodology that relate to their research field.

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Job satisfaction and relative income in economic transition: Status or signal?

Cited by 35 publications

References 83 publications

What Makes Workers Happy? Anticipated Rewards and Job Satisfaction

What Makes Workers Happy? Anticipated Rewards and Job Satisfaction

Surveying transitional experience and subjective well-being: Income, work, family

Pay Level Comparisons in Job Satisfaction Research and Mainstream Economic Methodology

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