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Race and Gender as Moderators

In: Other Topics

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The current issue and full text archive of this journal is available at www.emeraldinsight.com/0268-3946.htm JMP
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RESEARCH NOTE

Income, the love of money, pay comparison, and pay satisfaction

476
Received June 2005
Revised February 2006
Accepted February 2006

Race and gender as moderators
Thomas Li-Ping Tang
Middle Tennessee State University, Murfreesboro, Tennessee, USA

Theresa Li-Na Tang
Affinion Group, Brentwood, Tennessee, USA, and

Beeta Yazmeen Homaifar
Mental Illness Research, Education and Clinical Center, Denver, Colorado, USA
Abstract
Purpose – This study aims to test a model of pay satisfaction and argue that the income-pay satisfaction relationship depends on one’s love of money and how one compares.
Design/methodology/approach – The paper investigates: a direct path (income ! total pay satisfaction); an indirect path (income ! the love of money ! pay equity comparison ! total pay satisfaction) using a structural equation model (SEM) based on 210 full-time employees; and the model across race and gender in multi-group analyses.
Findings – The paper finds that for the whole sample, there was one significant path (pay equity comparison ! total pay satisfaction). Since African-Americans ($32,073.15) and women ($32,400.58) tended to have lower income than Caucasians ($37,180.73) and men ($38,287.97), respectively, income significantly increased the importance of the love of money for African-Americans and females, but not for Caucasians and males. The love of money to pay equity comparison path was not significant.
Income was not related to pay satisfaction. Results of the direct path alone showed that income contributes to pay satisfaction for the whole sample, male and female employees, and Caucasians, but not for African-Americans.
Research implications/limitations – If people do not use the love of money to

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