Abstract

The project analyses the relationship between wages and job satisfaction in Germany and Britain with data from the German Socio-Economic Panel (GSOEP) and the British Household Panel Survey (BHPS). According to descriptive evidence, there is a "satisfaction gap" between low-wage workers and higher-wage workers in Germany, but not in Britain. The project analyses whether this difference is due to compensation wage differentials that are existing in Britain, but not in Germany, because of a higher degree of labour market segmentation in Germany.