Effects of wage inequities on work attitudes and performance

A replication and extension of the Adams and Jacobsen (1964) investigation of inequity theory was carried out using a 3 × 2 experimental design with three levels of compensation and two levels of qualifiedness. This design included an overcompensated condition in which the overpayment was not confounded with unqualifiedness, thereby allowing a comparison of differential predictions from inequity and expectancy theory. Comparisons of over and underpayment conditions were also made to test the differential threshold hypothesis of inequity theory. Attitudinal as well as performance data were collected to investigate the possibility of differing modes of inequity reduction.The major finding in the present study was that variations in manipulated perceptions of qualifiedness produced significant effects upon both quality and quantity measures of work behavior while induced variations in the amount of anticipated compensation only affected quality of work. The qualified conditions produced fewer pieces of higher quality. This finding was discussed from the point of view of inequity theory as well as an alternative “self-esteem” explanation.Differences in work performance across pay levels were nonsignificant with the exception of a work quality measure in which the overpaid qualified group produced significantly more errors than the standard pay-qualified group. Possible interpretations of these findings were discussed and a range of conditions which may affect perceptions of inequity were considered.