Do higher wages come at a price?

Published in

Journal of Economic Psychology 33 (1), february 2012, pages 251-263


Using linked employer–employee data for Britain we find that higher wages are associated with higher job satisfaction and higher job anxiety. The association between wages and non-pecuniary job satisfaction disappears with the inclusion of effort measures whereas the positive association between wages and job anxiety remains strong and significant providing no support for a compensating differential explanation, but rather for a ‘gift exchange’ type of reciprocal behaviour. No support is found for the proposition that within-workplace wage differentials are a source of job anxiety.

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By Alex Bryson, Erling Barth, Harald Dale-Olsen
Published Feb. 28, 2012 10:18 AM - Last modified Nov. 20, 2017 2:35 PM