The Effects of Absolute and Relative Incomes on Job Satisfaction among Male Workers in Japan

Using a series of cross-sectional surveys, we investigate the sources of job satisfaction among Japanese male workers from 1955 to 1985. Our analysis focuses on income and disentangles the net effects of absolute income versus relative income during a period of high economic growth. The results indicate that both absolute income and relative income have substantial effects on job satisfaction after controlling for the respondent's demographic characteristics, job position in the labor market, and year of the survey. This conclusion suggests the significance of both the traditional economic and sociological approaches to the study of well-being and job satisfaction.