Determinants of fair own wage perceptions: the moderating effect of works councils and performance evaluations

Abstract

This empirical research note uses large-scale German survey data in order to analyse the determinants of fair wage perceptions. The probability to perceive the own wage as fair increases significantly with earned wages and is larger if a works council exists. Moreover, works councils and performance evaluations have a significant moderating effect on the link between the size of earned wages and fair wage perceptions.

Keywords:

• fairness perception
• performance evaluation
• procedural justice
• wages
• works council

JEL Classification:

• D03
• J31
• J33
• J53
• M52