Income inequality and job satisfaction of fulltime employees in germany. What factors contributed to or detracted from your overall satisfaction. Throughout this discussion the previously stated definitions of job satisfaction, group, and cohesion will be applied. This paper explores the relationship between two wellestablished concepts of measuring individual wellbeing. J0 abstract we use a simple theoretical framework and a randomized manipulation of access to information on. Sep 29, 2010 according to a new study, the satisfaction of employees with their jobs and income go down if they learn that they earn less than the median of their coworkers. This chapter will summarize current literature on job satisfaction and group cohesion, explore theories related to job satisfaction, and discuss the importance of being aware of employees current satisfaction levels. In this paper, relative income is constructed using cell average by age group, gender and education level. Clifton green and dexin zhou december 2019 abstract we find that withinfirm base pay inequality is negatively associated with employee morale, consistent with fairness concerns. The aim of this paper is to investigate the relationship between employees income level and employees job satisfaction.
The effect of income on job satisfaction and residential satisfaction. Pay inequality, job satisfaction, and firm performance t. The hawthorne studies and the subsequent human relations movement sanctified the search for the relationship. Some of the topics addressed in the survey include. Spector 1997 refers to job satisfaction in terms of how people feel about their jobs and different aspects of their jobs. The results of the empirical study show that there is a significant relationship between employees income level and employees job. Two job search magazines have published the results of job satisfaction surveys of workers in belgium. The relationship between employees income level and. Income inequality and job satisfaction of fulltime employees in. It is the sumtotal of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the employed persons who. Ismail bakan faculty of economics and administrative sciences kahramanmaras sutcu imam university kahramanmaras turkey assist.
The effect of income on general life satisfaction and. Findings indicate that the vast majority of journalists are satisfied with their current jobs 83%. A brief version of the larger employee satisfaction survey, this questionnaire serves to obtain a brief snapshot of employee climate. Job satisfaction and relative income in economic transition. Aug 24, 2012 using the first six waves of the household, income and labour dynamics in australia hilda survey dataset, a linear fixed effects model is used to examine the link between relative income and overall job satisfaction in australia. The relationship between pay and job satisfaction timothy a.
For this purpose, an empirical study was conducted in a british company. In either case, job satisfaction and salary are shown to have a general and positive relationship. Perceptions and evidence using a unique dataset we study both the actual and selfperceived relationship between subjective wellbeing and income comparisons against a wide range of potential comparison groups, enabling us to investigate a broader range of questions than in previous studies. Job satisfaction implies doing a job one enjoys, doing it well and being rewarded for ones efforts.
The financial crisis apparently had an effect across the board, according to gallup, despite most people reporting positively on factors such as the. The effects of employee recognition, pay, and benefits on job satisfaction. We expect that cadresmanagers will have higher levels of job satisfaction than manual workers because white collar workers have physically easier and, at the. In the regression model, life satisfaction, selfesteem, and perceived stress predicted job satisfaction f 5. The effects of job insecurity on job satisfaction, organizational. The concept of job satisfaction is multifaceted hence a number of theories are advanced to explain what it means and how the theories could be applied to enhance employee performance. The relationship between job satisfaction and job performance has been of great interest to researchers for a very long time. Job satisfaction can be defined also as the extent to wich a worker is content with the rewards he or she gets. It has been mentioned before that a lot of factors can affect an individuals response to hisher job. Although the terminology varies across disciplines, a common theme in the psychology, sociology and administrative science. The effect of income and working conditions on job satisfaction the college of new jersey pat odonnell 5182015 dr. Job satisfaction, relative utility, comparison income, education, empirical estimation. The customary rational of not relating monetary reward with the contentment is lessening. Job satisfaction is the key ingridient that leads to recognition, income, promotion.
Examining the curvilinear relationship between income and job. Employee job satisfaction is essential to face the dynamic and everincreasing challenges of maintaining productivity of the organization by keeping their workforce. Pdf we use two datasets for urban china to examine whether an increase in reference group income lowers or increases job satisfaction. In a survey conducted by the conference board, it has been found that 48.
The effects of employee recognition, pay, and benefits on job. First, workers reported satisfaction levels are shown to be inversely related to their comparison wage rates. Empirical study of employee job satisfaction muhammad rizwan 1, waqas mehmood khan corresponding author2, hafiz muhammad aqeel tariq 3, abdul ghaffar 4, malik zubair anjum5, ehsan ullah bajwa 6 1 lecturer, department of management sciences the islamia university of bahawalpur pakistan. Although the study found the possibility that job satisfaction and employees income levels are related to each other, it did not. The effects of employee recognition, pay, and benefits on. I get decent income for the job i perform 2 sufficiency of income to meet family expenses 3 availability of scope for schemes of financial rewards 4 availability of scope for schemes of nonfinancial rewards 5 clarity and ability to understand the pay and allowance system followed by the management 6 clarity and ability to understand the.
His equations include only two other independent variables. Relationship between job satisfaction and job performance in. Jobat and vacature asked about salaries, bonuses and holidays, and investigated the link between job satisfaction and factors such as age, employment status, function, sector, and company size. Additionally, supplementary analyses demonstrated that other facets of job satisfaction also had significant curvilinear relationships with income. Job satisfaction therefore is a measurement of job and work expectations and not just an overall holistic attitudinal manifestation.
Brayfield and crockett 1955 concluded that no appreciable relationship existed between the two. Job satisfaction further implies enthusiasm and happiness with ones work. Pdf the impact of income on academic staff job satisfaction at. The effect of income on general life satisfaction and dissatisfaction stefan boes. Employee job satisfaction survey questionnaire and template. Income inequality and job satisfaction of fulltime employees. Using data from the german socioeconomic panel study gsoep, it is shown that. Hopefully, the job chosen is the one that yields the most satisfaction. Arvey, bouchard, segal, and abraham 1989 found support for a genetic component to job satisfaction in their study of monozygotic, or identical, twins reared apart. He may believe that people use the word satisfaction in an inherently relativistic way. The survey was administered within octoberdecember 2016 using partly mail.
Operationalizing both concepts using micro panel data from the german socio. Schermerhorn 1993 defines job satisfaction as an affective or emotional response. The relation is stronger for employees with bottom and top. If job satisfaction is a concave function of relative pay, as in the inequalityaversion model of fehr and schmidt 1999, the negative e. They found that even when they were not raised together, identical twins tended to have job satisfaction levels that. The relationship between employees income level and employee. Pdf job satisfaction and relative income in economic transition. And their satisfaction doesnt seem to improve if they earn more than the median. Although the study found the possibility that job satisfaction and employees income levels are related to each other, it did not analyze the. Pdf the presence of job satisfaction as a vital factor amongst academic staff in university is too considerable. Pay inequality, job satisfaction, and firm performance. In order to measure the essence of employee satisfaction, five specific aspects of satisfaction were measured in the study. Donka mirtchevabroderson economics department people investigate many different aspects of a job when choosing a career.
Indeed, mohanty 2007 found that a positive attitude, which may arise from job satisfaction, among other factors in ones life, helps one earn more money. Introduction one of the most interesting ideas in social science is the notion that happiness depends upon relative income. The results show the equal importance of organizational culture, benefits and salary to increase job satisfaction which ultimately increases the employee retention rates in education and industrial sector. Perceptions and evidence guy mayraz cep, london school of economics gert g. Job satisfaction, relative utility, comparison income, education, empirical. Second, holding income constant, satisfaction levels are shown to be strongly declining in the level of education. More generally, the paper tries to help begin the task of constructing an economics of job satisfaction. Job satisfaction is the key ingridient that leads to recognition, income, promotion, and the achevement of other goals that lead to a feeling of fullfillment kaliski,2007. In addition, pay level and job satisfaction have been shown to play a role in outcomes such as work motivation chiu, 1999 and performance. The relationship between employees income level and employee job satisfaction.
The effect of income and working conditions on job satisfaction. Income inequality and job satisfaction of fulltime. This kenya national survey of journalists conducted in 2012 to 20 n 504 examines job satisfaction, income satisfaction, and predictors of job satisfaction. Job satisfaction can be defined also as the extent to wich a worker is content with the rewards he or she gets out of his ore her job,particulary in terms of intrinsic motivacion statt, 2004. Contribution of the study the following are the contributions that this research study provides. The relationship between job satisfaction, job performance. The effect of income on job satisfaction and residential. Oswald journal of public economics 61 i996 359381 table 3 job satisfaction equations 369 log income y 0. Oswald journal of public economics 61 1996 359381 363 and british data, respectively, have examined the correlation between predicted income and job satisfaction. This article discusses issues raised in research articles related to pay and job satisfaction, and will provide insight into our complex relationship with money. Help organizations understand the importance of having the right people in the right position. Income inequality and job satisfaction of fulltime employees in germany using data from the german socioeconomic panel study gsoep, it is shown that income comparison with persons who are better off has a clear impact on the job satisfaction of west german fulltime employees. Using data from the 2014 general social survey, this study examines income, individual, and workrelated factors impacting job satisfaction.
657 261 1351 688 512 641 740 513 1351 1391 537 1564 454 504 960 97 461 707 1437 677 1269 824 1160 646 639 839 1001 893 175 945 497 1136 30