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Diskussionspapiere - Hannover Economic Papers (HEP)

Relative Wage Positions and Quit Behavior: New Evidence from Linked Employer-Employee Data

Autor: Christian Pfeifer and Stefan Schneck
Nummer: 438, Feb 2010, pp. 49
JEL-Class: D03, J31, J62, J63, M52

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.

Zusammenfassung:
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