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The relationship between job satisfaction and managerial remuneration in small and medium-sized enterprises: An empirical test of 'comparison income' and 'equity theory' hypotheses

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UNSPECIFIED (1996) The relationship between job satisfaction and managerial remuneration in small and medium-sized enterprises: An empirical test of 'comparison income' and 'equity theory' hypotheses. APPLIED ECONOMICS, 28 (5). pp. 567-576.

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Abstract

The relationship between job satisfaction levels and the remuneration of non-owner managers employed by a sample of 97 UK small and medium sized enterprises (SMEs) is investigated. The main empirical findings are that relative remuneration levels appear to be largely explained by differences in human capital and job/firm characteristics and that job satisfaction is positively related to deviations from these estimated comparison-income levels. Moreover, the equity theory expectation that individuals with the least prospect of redressing payment inequities will have the greatest incentives to respond to payment inequities by cognitive adjustment is also supported. The results indicate that job satisfaction levels for individuals expecting to remain in their current post are not significantly affected by current payment inequities. For those managers who expect to move firms, the amount of payment inequity has a significantly positive effect upon their job satisfaction.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: APPLIED ECONOMICS
Publisher: ROUTLEDGE
ISSN: 0003-6846
Official Date: May 1996
Dates:
DateEvent
May 1996UNSPECIFIED
Volume: 28
Number: 5
Number of Pages: 10
Page Range: pp. 567-576
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

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