Overpayment and earnings satisfaction: an application of an ordered response Tobit Model
- 1 April 1999
- journal article
- research article
- Published by Informa UK Limited in Applied Economics Letters
- Vol. 6 (4), 235-238
- https://doi.org/10.1080/135048599353410
Abstract
In this paper an ordered response Tobit model is specified to determine the effects of absolute wages and relative overpayment on satisfaction with earnings. The joint estimations of wages and satisfaction with earnings allows us to disentangle the effects of relative and absolute wages on satisfaction with earnings. The model is estimated on two different data sets. All estimations show that satisfaction with earnings is determined by relative wages rather than by absolute wage levels. The results may have implications for pay policies of firmsKeywords
This publication has 2 references indexed in Scilit:
- Satisfaction and comparison incomeJournal of Public Economics, 1996
- Are “Overpaid” Workers Really Unhappy? A Test of the Theory of Cognitive DissonanceLABOUR, 1996