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Relative Income and Job Satisfaction in Chile

  • Rodrigo MonteroEmail author
  • Tomás Rau
Part of the International Handbooks of Quality-of-Life book series (IHQL)

Abstract

In this chapter, we study the determinants of job satisfaction in Chile. In particular, we focus on the relationship between income and job satisfaction that has been little studied in developing countries. Using data from the Oxford Poverty and Human Development Initiative (OPHI) we find a positive and concave relationship between income (wage) and job satisfaction. Regarding relative income, we find a negative relationship between the income of a reference group and individual job satisfaction. This can be understood as the predominance of the comparison effect, where an individual's job satisfaction decreases with the income of his/her peers.

Keyword

Job satisfaction Income Reference income 

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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  1. 1.Departamento de EconomíaUniversidad Diego PortalesSantiago, Región MetropolitanaChile
  2. 2.Instituto de EconomíaPontificia Universidad Católica de ChileSantiago, Región MetropolitanaChile

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