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Product Quality and Pay Equity Between Lower-Level Employees and Top Management: An Investigation of Distributive Justice Theory
Abstract
Douglas M. Cowherd University of Michigan David 1. Levine University of California, Berkeley The relationship between interclass pay equity and product quality is examined in a sample of 102 corporate business units. A small pay differential between lower-level employees and upper-echelon managers (after controlling for inputs) is theorized to lead to high product quality by increasing lower-level employees' commitment to top-management goals, effort, and cooperation. Interclass pay equity is determined by comparing the pay and inputs of hourly workers and of lower-level managers and professionals to those of the top three levels of managers. Consistent with the predictions of distributive justice theory, both measures of pay equity are positively related to business-unit product quality.'
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Citations
Cited by
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Tournament Theory: Thirty Years of Contests and Competitions
Connelly, B. L., Tihanyi, L., Crook, T. R., & Gangloff, K. A. (2014) · Journal of Management · doi:10.1177/0149206313498902 · Cited by 338
Designing fair AI for managing employees in organizations: a review, critique, and design agenda
Robert, L. P., Pierce, C., Marquis, L., Kim, S., & Alahmad, R. (2020) · Human–Computer Interaction · doi:10.1080/07370024.2020.1735391 · Cited by 268
Metadata
- Authors
- Cowherd, D. M., & Levine, D. I.
- Venue
- Administrative Science Quarterly
- Publisher
- JSTOR
- Published
- 1992-06
- Volume
- 37
- Issue
- 2
- Pages
- 302
- ISSN
- 0001-8392 (ISSN-L)
- OpenAlex
- W2024334610
- Cited by
- 704
- References
- 0
- FWCI
- 15.30
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Product Quality and Pay Equity Between Lower-Level Employees and Top Management: An Investigation of Distributive Justice Theory. https://app.cochat.ai/papers/10.2307/2393226
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- Cowherd, D. M., & Levine, D. I. (1992). Product Quality and Pay Equity Between Lower-Level Employees and Top Management: An Investigation of Distributive Justice Theory. Administrative Science Quarterly. https://doi.org/10.2307/2393226
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