Ethnocentrism and Internal Compensation Structuring: An Experimental Examination of Point Factor Job Evaluation

Martin, Daniel and Wiley, Donna and Legree, Peter (2006): Ethnocentrism and Internal Compensation Structuring: An Experimental Examination of Point Factor Job Evaluation. Published in: Western Journal of Human Resource Management , Vol. Spring, No. 2007

Abstract

“Comparable Worth” represents the concept that men, women, minorities, and whites should receive equal pay for work of equal value from their employer. Much research and many articles have been written in regards to overall pay inequities between men and women; however information regarding internal compensation strategies and perceived labor pools (percentage of minority applicants) has not been explored in depth. A total of 381 individuals participated in an experimental study that manipulated perceived labor market composition in order to establish the relative impact of ethnocentrism on the evaluation of compensable factors and salary. Results strongly supported the authors’ hypotheses, indicating that (a) significant discriminatory weighing of compensable factors by the perceived ethnicity and gender of labor pools occurs, (b) individual participant demographics (ethnicity and gender) contribute significantly to discrimination between perceived labor pools, and (c) participant individual differences significantly contribute to discriminatory weighting. Implications and directions for future research are considered.

• Item Type: MPRA Paper
• Language: English
• Keywords: Compensation; Ethnocentrism; Internal Structure; Point Factor; Labor Pool; Discrimination; Social; Bias
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M12 - Personnel Management ; Executives; Executive Compensation; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M52 - Compensation and Compensation Methods and Their Effects; C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior; D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; ; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M51 - Firm Employment Decisions ; Promotions; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M54 - Labor Management; A - General Economics and Teaching > A1 - General Economics > A14 - Sociology of Economics

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