Status in the Workplace: Evidence from M&A

43 Pages Posted: 30 Jan 2010 Last revised: 2 Feb 2010

See all articles by Illoong Kwon

Illoong Kwon

Seoul National University

Eva M. Meyersson Milgrom

Stanford Institute for Economic Policy Research (SIEPR); Stanford University - Department of Sociology

Date Written: October 1, 2009

Abstract

Using exogenous changes in workers’ relative wages during mergers and acquisitions (M&As), this paper analyzes how changes in workers’ relative wages, or status, in the workplace affect their turnover decisions. Evidence suggests that workers not only care about their status, but also have different preferences for status depending on the reference group. Moreover, those workers who experience an increase in their status within occupation due to an M&A, have lower turnover rates and lower wage growth rates than others. This suggests that workers prefer higher status even when it does not necessarily lead to higher wages.

Keywords: Status, Relative Wage, Turnover

JEL Classification: A14, D03, J60

Suggested Citation

Kwon, Illoong and Meyersson Milgrom, Eva, Status in the Workplace: Evidence from M&A (October 1, 2009). Available at SSRN: https://ssrn.com/abstract=1544547 or http://dx.doi.org/10.2139/ssrn.1544547

Illoong Kwon (Contact Author)

Seoul National University ( email )

Graduate School of Public Administration
599 Gwanak-ro
Gwanak-gu, Seoul 151-742
Korea, Republic of (South Korea)
82-2-880-8551 (Phone)
82-2-877-2411 (Fax)

HOME PAGE: http://www.albany.edu/~ik325357/

Eva Meyersson Milgrom

Stanford Institute for Economic Policy Research (SIEPR) ( email )

579 Serra Mall at Galvez St.
Stanford, CA 94305-6015
United States

Stanford University - Department of Sociology ( email )

Stanford, CA 94305
United States

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