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Earnings inequality increases job satisfaction, Danish research finds

An employee's job satisfaction increases when there is evidence that their co-workers earn more than they do for similar work (subscription required), according to potentially controversial research from Danish academics, reported on XpertHR.

The study finds that evidence of earnings inequality provides workers with a model for what they themselves could ultimately earn, as well as an impetus to make this happen.

According to the study's authors, it follows that: "Higher earnings for better-paid workers may improve everyone's job satisfaction."

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Comments (1)

Jo Stubbs:

Presumably there's a difference between knowing that co-workers who do a similar role but are higher up the career ladder earn more, and learning that a co-worker who does the same job as you, and just happens to be, for example, the opposite sex, or someone who realised that there was some scope for salary negotiation, earns more.

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