We here consider the effect of the level of income that individuals consider to be fair for the job they do, which we … take as measure of comparison income, on both subjective well-being and objective future job quitting. In six waves of … German Socio-Economic Panel data, the extent to which own labour income is perceived to be unfair is significantly negatively …

This paper models the relationship between income and reported well-being using latent class techniques applied to … strongly reject the hypothesis that individuals transform income into well-being in the same way. We show that both individual … marginal effect of income on well-being across classes will be reflected in both behaviour and preferences for redistribution. …