Template-Type: ReDIF-Paper 1.0
Title: "The Further We Stretch the Higher the Sky" - On the Impact of Wage Increases on Job Satisfaction
Author-Name: Christian Grund
Author-Name: Dirk Sliwka
Author-Email: 
Classification-JEL: M54, J28, J30, M12
Keywords: Job satisfaction, Wage increases, Habit formation, Wage profiles, Relative utility
Abstract: 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. 
Note: 
Length: 25
Creation-Date: 2003-01	
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse1_2003.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse1_2003