YOUNG workers who discover that their colleagues earn more than them can actually end up more satisfied because they see it as an incentive
The study, drawn from major household surveys in Germany, found young people used the bigger salaries of their peers to encourage them to believe they might one day earn the same.
But Professors Felix FitzRoy and David Ulph of the School of Economics at St Andrews University, together with academics from Hull University and the Hamburg Institute of International Economics, warned that over-45s were more likely to suffer from knowing about the pay-scales of their peers.
They ended up having lower self-esteem and were less satisfied because they foresaw limited opportunities, the research found.
Professor FitzRoy said: "This research provides a more nuanced picture of relative income effects on happiness, and underlines the importance of career aspirations for young people.
"This is particularly significant at a time when these opportunities are threatened by extreme austerity in the UK and other countries, though notably not in Germany with its export–led boom."
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