Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5047724 | China Economic Review | 2010 | 14 Pages |
We use two datasets for urban China to examine whether an increase in reference group income lowers or increases job satisfaction. The former is consistent with a status effect - an increase in the income of others lowers my satisfaction because I feel jealous. The latter is consistent with a signal effect - an increase in the income of others might make me jealous, but it also provides an information signal about my future prospects. When we use a single item indicator of job satisfaction we find no support for a status or signal effect; however, when we use a psychometrically valid instrument to measure job satisfaction, we find some support for the existence of a status effect. We consider the components of job satisfaction through which the status effect operates. We find that the status effect operates through satisfaction with co-workers, operating procedures, pay and supervision.