Does Wage Rank Affect Employees' Well-being?

How do workers make wage comparisons? Both an experimental study and an analysis of 16,000 British employees are reported. Satisfaction and well‐being levels are shown to depend on more than simple relative pay. They depend upon the ordinal rank of an individual's wage within a comparison group...

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Veröffentlicht in:Industrial relations (Berkeley) 2008-07, Vol.47 (3), p.355-389
Hauptverfasser: BROWN, GORDON D. A., GARDNER, JONATHAN, OSWALD, ANDREW J., QIAN, JING
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creator BROWN, GORDON D. A.
GARDNER, JONATHAN
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QIAN, JING
description How do workers make wage comparisons? Both an experimental study and an analysis of 16,000 British employees are reported. Satisfaction and well‐being levels are shown to depend on more than simple relative pay. They depend upon the ordinal rank of an individual's wage within a comparison group. “Rank” itself thus seems to matter to human beings. Moreover, consistent with psychological theory, quits in a workplace are correlated with pay distribution skewness.
doi_str_mv 10.1111/j.1468-232X.2008.00525.x
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source Wiley Online Library - AutoHoldings Journals; Sociological Abstracts; EBSCOhost Business Source Complete
subjects Correlation analysis
Great Britain
Happiness
Job satisfaction
Labour relations
Ranking
Satisfaction
Studies
United Kingdom
Wage rates
Wages
Wages & salaries
Well-being
Workers
Working conditions
title Does Wage Rank Affect Employees' Well-being?
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