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The Determinants of Perceived Underpayment: The Role of Racial Comparisons

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  • Mary Hampton
  • John Heywood

Abstract

Using a sample of young employed physicians, the determinants of perceived underpayment are examined for both white and minority workers. The examination confirms the importance of earnings comparisons within racial groups but also finds a substantial role for comparisons between racial groups. Workers apparently perceive racial earnings differences (as measured by economists) and build them into an assessment of the fairness of their labor market treatment. This finding emerges for both whites and minorities and occurs in a sample in which the pattern of earnings indicates a modest minority earnings premium.

Suggested Citation

  • Mary Hampton & John Heywood, 1999. "The Determinants of Perceived Underpayment: The Role of Racial Comparisons," Review of Social Economy, Taylor & Francis Journals, vol. 57(2), pages 141-155.
    • Handle: RePEc:taf:rsocec:v:57:y:1999:i:2:p:141-155
    DOI: 10.1080/00346769900000032
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    References listed on IDEAS

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    1. Francine D. Blau & Lawrence M. Kahn, 1992. "Race and Gender Pay Differentials," NBER Working Papers 4120, National Bureau of Economic Research, Inc.
    2. P. J. Sloane & H. Williams, 2000. "Job Satisfaction, Comparison Earnings, and Gender," LABOUR, CEIS, vol. 14(3), pages 473-502, September.
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    Cited by:

    1. Michael A. Shields & Stephen Wheatley Price, "undated". "Racial Harassment, Job Satisfaction and Intentions to Quit: Evidence from the British Nursing Profession," Discussion Papers in Public Sector Economics 01/2, Division of Economics, School of Business, University of Leicester.
    2. Michael A. Shields & Melanie E. Ward, "undated". "Improving Nurse Retention in the British National Health Service: The Impact of Job Satisfaction on Intentions to Quit," Discussion Papers in Public Sector Economics 00/3, Division of Economics, School of Business, University of Leicester.
    3. Manuel Carvajal, 2006. "Economic grounds for affirmative action: The evidence on architects and engineers in South Florida," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 515-538.
    4. Tortia, Ermanno C., 2008. "Worker well-being and perceived fairness: Survey-based findings from Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2080-2094, October.
    5. Ermanno Tortia, 2006. "Worker satisfaction and perceived fairness: result of a survey in public, and non-profit organizations," Department of Economics Working Papers 0604, Department of Economics, University of Trento, Italia.
    6. Paul, Maureen, 2006. "A cross-section analysis of the fairness-of-pay perception of UK employees," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 243-267, April.
    7. Rob Euwals & Melanie Ward, "undated". "The Remuneration of British Academics," Discussion Papers in Public Sector Economics 00/7, Division of Economics, School of Business, University of Leicester.
    8. Ward-Warmedinger, Melanie & Euwals, Rob, 2000. "What Matters Most: Teaching or Research? Empirical Evidence on the Remuneration of British Academics," CEPR Discussion Papers 2628, C.E.P.R. Discussion Papers.
    9. Euwals, Rob & Ward-Warmedinger, Melanie E., 2000. "The Remuneration of British Academics," IZA Discussion Papers 178, Institute of Labor Economics (IZA).

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