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Pay Satisfaction: An Empirical Test of a Discrepancy Model

Author

Listed:
  • H. Jack Shapiro

    (Baruch College, CUNY)

  • Mahmoud A. Wahba

    (Baruch College, CUNY)

Abstract

Lawler's discrepancy model of pay satisfaction was tested to determine its viability as a predictor of pay satisfaction. An analysis of die data seems to indicate that a substantial portion of the model is not supported. Thirteen out of nineteen proposed variables tested were found to have little or no relationships with pay satisfaction. However, social comparison, wage history, status, actual pay, performance and job difficulty were found to have weak to moderately strong relationships with pay satisfaction. Implications for the design of reward systems in organizations are discussed.

Suggested Citation

  • H. Jack Shapiro & Mahmoud A. Wahba, 1978. "Pay Satisfaction: An Empirical Test of a Discrepancy Model," Management Science, INFORMS, vol. 24(6), pages 612-622, February.
    • Handle: RePEc:inm:ormnsc:v:24:y:1978:i:6:p:612-622
    DOI: 10.1287/mnsc.24.6.612
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    Cited by:

    1. Pablo Ruiz-Palomino & Francisco Sáez-Martínez & Ricardo Martínez-Cañas, 2013. "Understanding Pay Satisfaction: Effects of Supervisor Ethical Leadership on Job Motivating Potential Influence," Journal of Business Ethics, Springer, vol. 118(1), pages 31-43, November.
    2. Filiz Gülal & Adam Ayaita, 2020. "The Impact of Minimum Wages on Well-Being: Evidence from a Quasi-experiment in Germany," Journal of Happiness Studies, Springer, vol. 21(7), pages 2669-2692, October.
    3. Jasmin Wiefek & Kathrin Heinitz, 2021. "The Common Good Balance Sheet and Employees’ Perceptions, Attitudes and Behaviors," Sustainability, MDPI, vol. 13(3), pages 1-30, February.
    4. Simone Schneider, 2010. "The Selection of Pay Referents: Potential Patterns and Impacts on Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 333, DIW Berlin, The German Socio-Economic Panel (SOEP).

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