When should you ask for more money?

Apparently, if you are willing (able?) to leave your job, it is the best position to be in to ask for more money.

This paper studies the ex-ante effect of worker separations on wage negotiations using matched worker–firm data from The Netherlands.

We find that wage negotiations aim to prevent separations; workers with a high propensity to quit are offered higher wages, while workers with a high layoff probability give up some of their wage.

Source; “Layoffs, quits and wage negotiations” from Economics Letters, Volume 109, Issue 2, November 2010, Pages 108-111

Via Barking up the wrong tree

Possible reasons why if you are able to walk away, you can get more money:

  • Your industry’s job market is solid and there are plenty of jobs
  • You have confident in your skills/talent/knowledge
  • You are not scared of being on your own for a while and unemployed
  • You feel like you are good enough to able to transition to any other job of your choosing
  • You have a good FU fund*

*Also known as an Emergency fund, for those of you with more polite vocabulary

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About the Author

Just a girl trying to find a balance between being a Shopaholic and a Saver. I cleared $60,000 in 18 months earning $65,000 gross/year. Now I am self-employed, and you can read more about my story here, or visit my other blog: The Everyday Minimalist.