We empirically model individual utility from pay as function of worker’s own wage and the earnings of all other workers within the same establishment. The aims of this paper are twofold: first, to study the mechanisms underlying the importance of relative wages in determining worker satisfaction; second, to assess whether high within establishment wage inequality leads, on average, to high satisfaction._x000d_ _x000d_ JEL Classification: C25, J28, J31, J33_x000d_ _x000d_ Key words: satisfaction, co-workers, envy, pride, wage inequality
