Model Comparison of the Effect of Pay Satisfaction and Demographic Factors on Job Satisfaction: Indonesians vs. Malaysians

This study compares Malaysians and Indonesians on the effect of pay satisfaction (distributive, procedural, interactional fairness) and demographic factors (gender, age, educational level, occupational rank, marital status, organizational tenure) on job satisfaction. Two hundred Malaysians and 105 Indonesians between the ages of 23 and 65 who have received a university degree from abroad and who are currently working in their home country participated in this study. A causal model using structural equation modeling was established. This study found that interactional fairness and educational level affects job satisfaction in both samples. Among Malaysians, age and marital status also affects their job satisfaction, whereas among Indonesians, only organizational tenure matters. This study shows that Indonesians and Malaysians, individuals from two countries that are culturally and economically similar to one another, are different individuals when it comes to their job satisfaction and should not be clustered together as previous studies have done.

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Alia Azalea, Universiti Tunku Abdul Rahman, Malaysia
Fatimah Omar, National University of Malaysia, Malaysia
Khairul Anwar Mastor, National University of Malaysia, Malaysia

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Added on Monday, July 18th, 2016

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