Underpaid but Satisfied

Abstract

Roughly half of American workers report feeling underpaid. Equity and distributive justice theory and research suggests that perceived underpayment is associated with more job dissatisfaction. However, no population-based research has examined the situational factors that may protect individuals from the harmful effects of perceived underpayment. Using data from a national sample of American workers, this study examines the extent to which forms of security modify the association between perceived underpayment and job dissatisfaction. Results indicate that while perceived underpayment is associated with more job dissatisfaction, each of the following attenuates that association: job security, financial security, and employment in the public sector. This provides a novel theoretical elaboration and extension.