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Large pay disparities can be regarded as fair, with proper motivational orientation

Sep. 27, 2017, 9:28 AM | Want more research news? Subscribe to our weekly newsletter »

When employees are guided by the pursuit of gains and advancement, they can view pay disparities as fair, according to new research by Tae-Youn Park of Vanderbilt’s Owen Graduate School of Management.

According to a paper recently published in Organizational Behavior and Human Decision Processes, a large pay dispersion (i.e., wide pay variances among employees) can increase perceptions of pay fairness when employees have a strong promotion regulatory focus.

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