Non-linear effects of comparison income in quit decisions: status versus signal !

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet


This research note utilizes German matched employer–employee data to investigate the relationship between mobility and relative wage positions within establishments for workers without university degrees. The main innovation involves the examination of non‐linear effects, because previous literature mainly analyses mean linear effects. Our random‐effects probit estimates of mobility suggest a non‐linear U‐shaped effect with respect to relative standing. This is plausible because workers in low relative wage positions might quit because of their low status and those in high relative wage positions because of their low career advancement opportunities. Consideration of non‐linearities, thus, is a major improvement for the analysis of the effects of relative wage positions.
ZeitschriftLabour - Review of labour economics and industrial relations
Seiten (von - bis)356-368
Anzahl der Seiten13
PublikationsstatusErschienen - 09.2012