Non-linear effects of comparison income in quit decisions: status versus signal !
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In: Labour - Review of labour economics and industrial relations, Vol. 26, No. 3, 09.2012, p. 356-368.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Non-linear effects of comparison income in quit decisions: status versus signal !
AU - Pfeifer, Christian
AU - Schneck, Stefan
PY - 2012/9
Y1 - 2012/9
N2 - 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.
AB - 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.
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=84865304300&partnerID=8YFLogxK
U2 - 10.1111/j.1467-9914.2012.00549.x
DO - 10.1111/j.1467-9914.2012.00549.x
M3 - Journal articles
VL - 26
SP - 356
EP - 368
JO - Labour - Review of labour economics and industrial relations
JF - Labour - Review of labour economics and industrial relations
SN - 1121-7081
IS - 3
ER -