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Unequal Pay, Unequal Responses? Pay Referents and their Implications for Pay Level Satisfaction

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  • Michelle Brown

Abstract

Pay referents are those with whom workers make pay comparisons. The five referents used in this study are: market, organizational, financial, social and historical. Of particular interest is the importance attached to each of these referents and the implications of inequity (under and over) for pay level satisfaction. The study also examines reactions to pay inequity on the basis of union status. The data for the study derive from a survey of 2867 public sector research workers. The study finds that the market referent is the most important to all workers, irrespective of union status; type of inequity (over or under) with this referent has the greatest impact on pay level satisfaction. The paper concludes with an examination of the implications for management, unions and the design of pay systems.

Suggested Citation

  • Michelle Brown, 2001. "Unequal Pay, Unequal Responses? Pay Referents and their Implications for Pay Level Satisfaction," Journal of Management Studies, Wiley Blackwell, vol. 38(6), pages 879-886, September.
    • Handle: RePEc:bla:jomstd:v:38:y:2001:i:6:p:879-886
    DOI: 10.1111/1467-6486.00263
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    Cited by:

    1. Cornelissen, Thomas & Heywood, John S. & Jirjahn, Uwe, 2011. "Performance pay, risk attitudes and job satisfaction," Labour Economics, Elsevier, vol. 18(2), pages 229-239, April.
    2. Byunghyun Lee & Changjae Lee & Ilyoung Choi & Jaekyeong Kim, 2022. "Analyzing Determinants of Job Satisfaction Based on Two-Factor Theory," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    3. Möller Quintanar, Ana, 2022. "Transparency in Complex Compensation Systems," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(1), pages 185-200.
    4. Lee, Gilsoo & Cho, Sam Yul & Arthurs, Jonathan & Lee, Eun Kyung, 2019. "CEO pay inequity, CEO-TMT pay gap, and acquisition premiums," Journal of Business Research, Elsevier, vol. 98(C), pages 105-116.
    5. Temesgen Kifle, 2014. "Do Comparison Wages Play a Major Role in Determining Overall Job Satisfaction? Evidence from Australia," Journal of Happiness Studies, Springer, vol. 15(3), pages 613-638, June.
    6. repec:lan:wpaper:3175 is not listed on IDEAS
    7. Firth, Michael & Leung, Tak Yan & Rui, Oliver M. & Na, Chaohong, 2015. "Relative pay and its effects on firm efficiency in a transitional economy," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 59-77.
    8. repec:lan:wpaper:2926 is not listed on IDEAS
    9. Belfield, Clive R. & Heywood, John S., 2008. "Performance pay for teachers: Determinants and consequences," Economics of Education Review, Elsevier, vol. 27(3), pages 243-252, June.
    10. C Green & J S Heywood, 2007. "Performance pay, sorting and the dimensions of job satisfaction," Working Papers 584041, Lancaster University Management School, Economics Department.
    11. Riaz, Adnan & Ramay, Muhammad, 2010. "Antecedents of job satisfaction: A study of telecom sector," Perspectives of Innovations, Economics and Business (PIEB), Prague Development Center (PRADEC), vol. 4(1), pages 1-8, February.
    12. Adnan Riaz & Muhammad Ramay, 2010. "Antecedents Of Job Satisfaction:A Study Of Telecom Sector," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 4(1), pages 66-73, February.
    13. E. Holly Buttner & Kevin B. Lowe, 2017. "Addressing Internal Stakeholders’ Concerns: The Interactive Effect of Perceived Pay Equity and Diversity Climate on Turnover Intentions," Journal of Business Ethics, Springer, vol. 143(3), pages 621-633, July.
    14. Changjae Lee & Byunghyun Lee & Ilyoung Choi & Jaekyeong Kim, 2023. "Exploring Determinants of Job Satisfaction: A Comparison Between Survey and Review Data," SAGE Open, , vol. 13(4), pages 21582440231, December.
    15. repec:lan:wpaper:2928 is not listed on IDEAS
    16. repec:lan:wpaper:3020 is not listed on IDEAS
    17. Colin Green & John S. Heywood, 2008. "Does Performance Pay Increase Job Satisfaction?," Economica, London School of Economics and Political Science, vol. 75(300), pages 710-728, November.
    18. Dubnovitskaya, Anastasia & Furmanov, Kirill, 2022. "Relative wage as a determinant of pay satisfaction in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 66, pages 99-117.
    19. Burak Kağan Demirtaş, 2022. "Spillover effects of the minimum wage introduction based on horizontal fairness: A lab experiment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3370-3385, December.

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