Abstract
We analyze how income ranks influence job satisfaction. Rank is defined as the wage percentile in which the individual is in a given year. We estimate a distributed lag model on GSOEP data in order to analyze the impact of past ranks and of past rank changes on self-reported satisfaction and to assess after how much time the effect of ranks on individual well-being disappears. We find that both ranks and rank mobility are relevant drivers of job satisfaction, but their impact is short-lived.
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