Relative Wage Positions and Quit Behavior:New Evidence from Linked Employer-Employee Data

We use a large linked employer-employee data set to analyze the importance of relativewage positions in the context of individual quit decisions as an inverse measure of jobsatisfaction. Our main findings are: (1) Workers with higher relative wage positionswithin their firms are on average more likely to quit their jobs than workers with lowerrelative wage positions; and (2) workers, who experience a loss in their relative wagepositions, are also more likely to have a wage cut associated with their job-to-jobtransition.[...]