Nonlinear Evaluation of Status and Signal Effects

The paper uses German panel data to examine the effects of relative standing on individual satisfaction with the job, the propensity to change jobs, and intentions to start-up an enterprise in the near future. The relationship between relative wage positions and job satisfaction is inversely U-shaped. This is interpreted as evidence that low status translates into low utility while employees with high relative standing seem to be more concerned about the lack of future career prospects in paid employment. Workers who gather utility from status and career advancement opportunities simultaneously are more satisfied with their jobs. The paper also shows that lower satisfaction with the job translates into considerations to leave the job.

Schneck, S. (2013): Nonlinear Evaluation of Status and Signal Effects, in: Evidence-based HRM: a Global Forum for Empirical Scholarship, Jg. 1, Heft 2, S.112-129.

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