Social Comparisons of Wage Increases and Job Satisfaction

Grund, Christian; Rubin, Maike

doi:10.2139/ssrn.2810449

Cited by 2 publications

(2 citation statements)

References 12 publications

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“…To a large degree, this effect might be rooted in the fact that the effects of wages on job satisfaction also depend on how an employee's wage compares with peers' wages (e.g., Brown et al., 2008; Kosteas, 2011). These findings have their roots in individuals evaluating their own wages on the basis of comparison groups or expected wages (Drakopoulos, 2019; Grund & Rubin, 2017; Layard, 1980). Therefore, we hypothesised: Wage increases will have a positive but marginally decreasing effect on job satisfaction (Hypothesis 4) .…”

Section: The Determinants and Consequences Of Job Satisfactionmentioning

confidence: 99%

The joy of gratifications: Promotion as a short‐term boost or long‐term success – The same for women and men?

Otto

Dekker

et al. 2021

Human Res Mgmt Journal

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Job satisfaction helps create a committed workforce with many positive effects, such as increased organisational citizenship behaviour and reduced absenteeism. In turn, job satisfaction can be increased through gratifications, such as wage increases and promotions. But human satisfaction is prone to being governed by the homeostatic principle and will eventually return to the individual's base level. Thus, we longitudinally examined the effects of promotions to managerial positions and pay raises on job satisfaction across a period of 27 years. Our analyses were based on a large-scale representative German panel (N = 5978 observations) that allowed us to separate the effect of a promotion from the effect of the corresponding wage increase. We found that promotions positively affected job satisfaction in the short term but diminished after 1 year. Furthermore, the influence of a promotion on job satisfaction was more pronounced for men than for women.

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Section: The Determinants and Consequences Of Job Satisfactionmentioning

confidence: 99%

The joy of gratifications: Promotion as a short‐term boost or long‐term success – The same for women and men?

Otto

Dekker

et al. 2021

Human Res Mgmt Journal

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show abstract

“…Grund and Rubin (2017) explain that workers use other employees' wages as a reference point and when there is a wage increase for others, it is interpreted as a deviation from the reference point. A worker's wage may not be increased at the same time as other workers' wages are increased, or a worker is offered a smaller wage increase compared to other workers.…”

Section: Introductionmentioning

confidence: 99%

Spillover effects of the minimum wage introduction based on horizontal fairness: A lab experiment

Demirtaş

2022

Manage Decis Econ

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This paper analyses how a minimum wage introduction affects reservation wages and wage offers based on horizontal fairness with a lab experiment with two experimental settings. The first experimental setting was applied to two types of workers (low or high skills), whereas there are one type of workers in the second setting but two types of sectors, covered and uncovered sectors, depending on whether the minimum wage is enforced. Results show the minimum wage introduction generates spillover effects on the high‐skilled workers' reservation wages and wage offers, whereas there is no evidence of the spillover effect on the uncovered sector.

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Social Comparisons of Wage Increases and Job Satisfaction

Cited by 2 publications

References 12 publications

The joy of gratifications: Promotion as a short‐term boost or long‐term success – The same for women and men?

The joy of gratifications: Promotion as a short‐term boost or long‐term success – The same for women and men?

Spillover effects of the minimum wage introduction based on horizontal fairness: A lab experiment

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