Resource title

The Further We Stretch the Higher the Sky: On the Impact of Wage Increases on Job Satisfaction

Resource image

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Resource description

The impact of wage increases on job satisfaction is explored. First, it is empirically confirmed that current job satisfaction rises with the absolute wage level as well as with wage increases. Second, a basic job satisfaction function is constructed based on the empirical results, and theoretical implications are analyzed. Myopic maximization of such a function directly implies increasing and concave shaped wage profiles. It is shown that employees get unhappier over time staying on a certain job although wages increase, which again is empirically confirmed.

Resource author

Christian Grund, Dirk Sliwka

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22830

Resource license

Adapt according to the presented license agreement and reference the original author.