Organizational governance and trade-offs between pay and subjective employee well-being: a comparative analysis

Budd, John W. and Lamare, J Ryan ORCID: 0000-0003-4935-2341 (2025) Organizational governance and trade-offs between pay and subjective employee well-being: a comparative analysis. British Journal of Industrial Relations, 63 (2). 305 - 322. ISSN 0007-1080

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Abstract

The incompleteness of labour contracts is expected to cause uncertainty among forward-looking employees as to whether implicit contracts with greater intrinsic rewards in lieu of pay will be breached by employers, thus reducing employee well-being. David Marsden theorized that an organization's form of governance can serve as a stable, easy-to-observe signal of the likelihood of a breach, and thus employees across governance types will exhibit different extrinsic–intrinsic trade-offs. Using the European Working Conditions Survey, we extend Marsden's theory and find supportive evidence across 35 European countries and 9 governance categories. We also extend Marsden's theorizing into the comparative domain and analyse patterns of subjective well-being, compensatory pay and organizational governance across varieties of political economies.

Item Type:	Article
Additional Information:	© 2024 The Author(s)
Divisions:	Management
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited:	21 Nov 2024 10:36
Last Modified:	11 Sep 2025 12:10
URI:	http://eprints.lse.ac.uk/id/eprint/126118

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