Determinants of on-the-job Search Behavior: An Empirical Analysis

Abstract

The primary aim of this paper was to shed light on the impact of subjective alternative wage, wage changes and wage discrimination on job search behavior of employees. The research was based on primary data; the survey was conducted among Hungarian internet user employees. Our results suggest that regardless of their job search behavior employees are aware of alternative wages, which have the greatest impact on intentions to quit and active search. With respect to wage cut and wage increase we have found that they are both significant; the former has strong positive effect on intentions to quit and active search, while the latter reduces the probability of on-the-job search. To our best knowledge, this study was the first to reveal direct impact of wage discrimination on job search behavior of employees according to which there is a weak, but positive effect on intentions to quit and active search. Last but not least, the results of our study confirm the role of non-financial incentives in job search, where superior-subordinate relationships have a special importance.