The anticipation and adaptation effects of intra- and interpersonal wage changes on job satisfaction
This paper analyses how individual job satisfaction is affected by wage changes. In order to account for potential dynamic effects of wage changes on job satisfaction, we include lead and lag effects of income changes in our analysis. Furthermore, we examine the role of social comparisons, i.e., how an individual’s job satisfaction is driven not only by changes in his wages, but also by the size of these changes relative to wage changes within his reference group.
J28 - Safety; Accidents; Industrial Health; Job Satisfaction, Related Public Policy ; M50 - Personnel Economics. General ; M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs)