Inequality at work
Subtitle: the effect of peer salaries on job satisfaction
By: David Card ... [et al,]
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16396; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16396.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] :
Description: "Economists have long speculated that individuals care about both their absolute income and their income relative to others.  We use a simple theoretical framework and a randomized manipulation of access to information on peers' wages to provide new evidence on the effects of relative pay on individual utility.  A randomly chosen subset of employees of the University of California was informed about a new website listing the pay of all University employees.  All employees were then surveyed about their job satisfaction and job search intentions.  Our information treatment doubles the fraction of employees using the website, with the vast majority of new users accessing data on the pay of colleagues in their own department.  We find an asymmetric response to the information treatment: workers with salaries below the median for their pay unit and occupation report lower pay and job satisfaction, while those earning above the median report no higher satisfaction.  Likewise, below-median earners report a significant increase in the likelihood of looking for a new job, while above-median earners are unaffected.  Our findings indicate that utility depends directly on relative pay comparisons, and that this relationship is non-linear"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 2/10/2011.

Includes bibliographical references.

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