The Link between Relative Pay and Job Satisfaction Revisited

Eberl A, Collischon M (2020)

Publication Type: Journal article

Publication year: 2020

Journal

European Sociological Review Oxford University Press (OUP): Policy F - Oxford Open Option D

URI: https://academic.oup.com/esr/advance-article-abstract/doi/10.1093/esr/jcaa045/5956258

DOI: 10.1093/esr/jcaa045

Abstract

This paper investigates the connection between job satisfaction and comparison pay (defined as a

person’s rank within a reference group) with SOEP Data. Based on work values and social networks,

we argue that the existing literature neglects heterogeneities in individual job satisfaction as well as

wage trajectories along the career path. Thus, previous studies based on survey data likely overestimate

the connection between job satisfaction and comparison pay. We use fixed-effects individual

slopes models to account for heterogeneous time trends between individuals. We find no statistically

significant correlation between comparison pay and job satisfaction. We conclude that previous estimates

were biased by not accounting for idiosyncratic trends in job satisfaction due to unobserved

heterogeneity, which led to an omitted variable bias.

Authors with CRIS profile

Andreas Eberl Lehrstuhl für Empirische Wirtschaftssoziologie Matthias Collischon Lehrstuhl für Empirische Wirtschaftssoziologie

How to cite

APA:

Eberl, A., & Collischon, M. (2020). The Link between Relative Pay and Job Satisfaction Revisited. European Sociological Review. https://doi.org/10.1093/esr/jcaa045

MLA:

Eberl, Andreas, and Matthias Collischon. "The Link between Relative Pay and Job Satisfaction Revisited." European Sociological Review (2020).

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