Pay fairness and employee outcomes: Exacerbation and attenuation effects of financial need

Jason DeFrance Shaw, Nina Gupta

Research output: Journal article publicationJournal articleAcademic researchpeer-review

68 Citations (Scopus)


The consequences of pay fairness perceptions are rarely explored, in part because of the lack of a compelling theory which relates pay attitudes directly to distal health and behavioural outcomes. We propose financial need as a potential moderator of the relationship between pay fairness and employees' physical health, psychological health, and work-related behaviours. Differential exacerbating and attenuating effects are predicted for various outcomes. In a longitudinal study of 651 employees of rive American mid-western organizations, exacerbation predictions were strongly supported in cross-sectional analyses for life satisfaction, depression, and somatic complaints. Attenuation predictions received support cross-sectionally and longitudinally for job search intent, but were not supported for performance, absenteeism, or voluntary turnover. The importance of these results for understanding pay dynamics and for outlining mid-range theories is highlighted.
Original languageEnglish
Pages (from-to)299-320
Number of pages22
JournalJournal of Occupational and Organizational Psychology
Issue number3
Publication statusPublished - 1 Jan 2001
Externally publishedYes

ASJC Scopus subject areas

  • Applied Psychology
  • Organizational Behavior and Human Resource Management


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