Abstract
Wellbeing begins with physical health, to personal emotions, including freedom from financial worry, and out to social groups, work groups, and wider society. Such ever-increasing circles of holistic wellbeing shift from proximal to distal, micro to macro; and back. At each radius, decent wages transform an OR into an AND: They help protect people from illness and an untimely death, e.g., from overworking to make ends meet (not ‘life OR livelihood’ but life AND livelihood); boost feelings of control to meet responsibilities (responsibility AND control); protect from financial strain (Money AND freedom); prolong happiness at work and outside of it (Hedonic AND Eudaimonic); and help build more equal, peaceful, robust and secure societies (free from absolute AND relative poverty). Ripples like these suggest one good wage has multiple good outcomes. Positioned between individuals and wider society, organizations are a fulcrum to lift wage AND wellbeing.
“Workplace wellbeing related to all aspects of working life, from the quality and safety of the physical environment, to how workers feel about their work, their working environment, the climate at work and work organisations”.
ILO (2019e, emphases added)
“The issue of well-being has emerged in the past years as a consequence of both structural changes in work organization and increases in work intensity… blurring the boundaries between work and personal life…. At the same time a proportion of workers continue to work in the informal economy or precarious work situations and spend long hours at work to make ends meet under poor working conditions, which has a substantial impact on their health and work-life balance”.
ILO (2019f, emphases added)
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
‘Work conditions’ and ‘equity’ are also mentioned (p. 395) but not the words ‘wage’, or ‘wages’. Earning more money is briefly linked to higher average happiness in just three studies (p. 392, 400).
- 2.
Either in one poorly waged but not time-poor job or from multiple poorly waged and time-poor jobs.
References
Bergman, M. E., & Jean, V. A. (2015). Where have all the workers gone? A critical analysis of the under-representativeness of our samples relative to the labor market in the industrial-organizational psychology literature. Industrial and Organizational Psychology, 1–30.
Brussevich, M., Dabla-Norris, E., & Khalid, S. (2020). Who will bear the brunt of lockdown policies? Evidence from tele-workability measures across countries. International Monetary Fund (IMF) Working Paper 20/88.
Burman, R., & Goswami, T. G. (2018). A systematic literature review of work stress. International Journal of Management Studies, 5, 112–132.
Carr, S. C. (2020a). The path to a better balance between the SDGs and a better understanding of what they mean for people in everyday life lies in asking people directly. : International Science Council. Accessed on September 3, 2020, from https://council.science/human-development/latest-contributions/the-path-to-a-better-balance-between-the-sdgs-and-a-better-understanding-of-what-they-mean-for-people-in-everyday-life-lies-in-asking-people-directly/
Carr, S. C. (2020b). TED talk: I0 words for Covid. Society for International and Organizational Psychology (SIOP).
Carr, S. C. (2021). Human development can help bring SDGs from the billboards into people’s lives. In International Science Council [ISC] (Ed.), Conversations on rethinking human development (pp. 100–104). ISC/UNDP.
Carr, S. C., McWha, I., MacLachlan, M., & Furnham, A. (2010). Remuneration discrepancies and poverty reduction: Elephant salaries in the international development parlour. Special Section: International Journal of Psychology, 45(5), 321–380.
Carr, S. C., Leggatt-Cook, C., Clarke, M., MacLachlan, M., Papola, T. S., Pais, J., Thomas, S., Normand, C., & McAuliffe, E. (2011). Report: What is the evidence of the impact of increasing salaries on improving the performance of public servants, including teachers, nurses and mid-level occupations, in low- and middle-income countries: Is it time to give pay a chance? UKAID: London. Systematic Review (fully peer-reviewed by Cochrane Centre and 3IE Development Centre in UK).
Carr, S. C., Maleka, M., Meyer, I., Barry, M. L., Harr, J., et al. (2018). How can wages sustain a living? By getting ahead of the curve. Sustainability Science. https://doi.org/10.1007/s11625-018-0560-7
Centre for Bhutan Studies and GNH Research. (2016). A compass towards a just and harmonious society: 2015 GNH Survey Report. Centre for Bhutan Studies and GNH Research.
Chuluun, T., Graham, C., & Myanganbuu, S. (2016). Who is happy in the land of eternal blue sky? Some insights from a first study of wellbeing in Mongolia. International Journal of Wellbeing, 6, 49–70.
Cochrane, R., & Robertson, A. (1973). The life events inventory: A measure of the relative severity of psycho-social stressors. Journal of Psychosomatic Research, 17, 135–139.
Correia, S., Luck, S., & Verner, E. (2020). Pandemics depress the economy, public health interventions do not: Evidence from the 1918 Flu. Social Science Research Network (SSRN): Elsevier.
Diener, E. (2000). Subjective well-being. American Psychologist, 55, 34–43.
Easterlin, R. A. (2004). The economics of happiness (pp. 26–33). Daedalus.
Eisenberg, P., & Lazarsfeld, P. F. (1938). The psychological effects of unemployment. Psychological Bulletin, 35, 238–290.
Eurofound. (2020). Living, working and COVID-19: First findings – April 2020. European Foundation for the Improvement of Living and Working Conditions, April. https://www.eurofound.europa.eu/publications/report/2020/living-working-and-covid-19. Rolling report.
Festinger, L. (1954). A theory of social comparison processes. Human Relations, 7, 117–140.
Fisher, C. D. (2009). Happiness at work. International Journal of Management Reviews, 12, 384–412.
French, M. T., & Dunlap, L. J. (1998). Compensating wage differentials for job stress. Applied Economics, 30, 1067–1075.
Fryer, D., & Fagan, R. (2003). Poverty and Unemployment. In S. C. Carr & T. S. Sloan (Eds.), Poverty and psychology: From global perspective to local practice (pp. 87–101). Springer.
Galicki, C. (2020). Impact of COVID-19 on financial wellbeing. Commission for Financial Capability.
Galinha, I. C., Garcia-Martín, M. Á., Gomes, C., & Oishi, S. (2016). Criteria for happiness among people living in extreme poverty in Maputo, Mozambique. International Perspectives in Psychology: Research, Practice, Consultation, 5(2), 67–90. https://doi.org/10.1037/ipp0000053
Ganster, D. C., & Rosen, C. C. (2013). Work stress and employee health: A multidisciplinary review. Journal of Management, 39, 1085–1122.
Gardner, D. G., van Dyne, L., & Pierce, J. L. (2004). The effects of pay level on organization-based self-esteem and performance: A field study. Journal of Occupational and Organisational Psychology, 77, 307–322.
George, J., & Brief, A. P. (1989). The economic instrumentality of work: An examination of the moderating effects of financial requirements and sex on the pay-life satisfaction relationship. Academy of Management Proceedings, 1, 209–213.
Gloss, A., Carr, S. C., Reichman, W., & Abdul-Nasiru, I. (2017). From handmaidens to POSH humanitarians. Industrial & Organizational Psychology Journal, 10, 1–41.
Haar, J. M., Russo, M., Sune, A., & Ollier-Malaterre, A. (2014). Outcomes of work-life balance on job satisfaction, life satisfaction and mental health: A study across seven cultures. Journal of Vocational Behaviour, 85, 361–373.
Hackman, J. R., & Oldham, G. R. (1974). Motivation through the design of work: Test of a theory. Organizational Behaviour and Human Performance, 16, 250–279.
Hall, J., & Helliwell, J. F. (2014). Happiness and human development. UNDP [United National Development Programme] Human Development Report Office.
Hart, T. (1971). The inverse care law. The Lancet, 1, 405–412.
Headey, B., & Wearing, A. (1989). Personality, life events, and subjective well-being: Toward a dynamic equilibrium model. Journal of Personality and Social Psychology, 57, 731–739.
Helliwell, J., Layard, R., & Sachs, J. (Eds.). (2012). World happiness report. Columbia University Earth Institute.
ILO (International Labour Organization). (2013). World of work report 2013: Repairing the economic and social fabric. ILO.
ILO (International Labour Organization). (2019e). Workplace well-being. ILO.
ILO (International Labour Organization). (2019f). 6th regulating for decent work conference – Track III. Well-being in the world of work. ILO.
ILO (International Labour Organization). (2021). Decent work. ILO.
ITUC (International Trade Union Confederation). (2018, December). Global poll: Governments’ failure to address low wages and insecure jobs threatens trust in politics and democracy. YouGov/ITUC. https://www.ituc-csi.org/ITUC-Global-Poll-2018, Accessed April 9, 2020
Jebb, A. T., Tay, L., Diener, E., & Oishi, S. (2018). Happiness, income satiation, and turning points around the world. Nature Human Behaviour, 2, 33–38.
Jiang, L., & Probst, T. M. (2017). The rich get richer and the poor get poorer: Country- and state-level income inequality moderates the job insecurity-burnout relationship. Journal of Applied Psychology, 102, 672–681.
Judge, T. A., Piccolo, R. F., Podsakoff, N. P., Shaw, J. C., & Rich, B. L. (2010). The relationship between pay and job satisfaction: A meta-analysis. Journal of Vocational Behavior, 77, 157–167.
Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the National Academy of Sciences of the United States of America (PNAS), 107, 16489–16493.
Kaiser, T., & Menkhoff, L. (2017). Does financial education impact financial literacy and financial behaviour, and if so, how? German Institute for Economic Research.
Karasek, R. (1979). Job demands, job decision latitude, and mental strain: Implications for job redesign. Administrative Science Quarterly, 24, 285–306.
Karasek, R., & Theorell, T. (1990). Healthy work: Stress, productivity, and the reconstruction of working life. Basic Books.
Kausto, J., Elo, A. L., Lipponen, J., & Elovainio, M. (2005). Moderating effects of job insecurity in the relationships between procedural justice and employee well-being: Gender differences. European Journal of Work and Organizational Psychology, 14, 431–452.
Kenny, D. A., & Judd, C. M. (1986). Consequences of violating the independence assumption in analysis of variance. Psychological Bulletin, 99(3), 422–431. https://doi.org/10.1037/0033-2909.99.3.422
Kirsch, J. A., Love, G. D., Radler, B. T., & Ryff, C. D. (2019). Scientific imperatives vis-a-vis growing inequality in America. American Psychologist, 74, 764–777.
Klug, K., Selenko, E., & Gerlitz, J. Y. (2021). Working, but not for a living: A longitudinal study on the psychological consequences of economic vulnerability among German employees. European Journal of Work and Organizational Psychology. in press.
Kuvaas, B. (2006). Work performance, affective commitment, and work motivation: The roles of pay administration and pay level. Journal of Organisational Behaviour, 27, 365–385.
Lawson, K. J., Noblet, A. J., & Rodwell, J. T. (2009). Promoting employee wellbeing: The relevance of work characteristics and organisational justice. Health Promotion International, 24, 223–233.
MacLachlan, M., Carr, S. C., & McAuliffe, E. (2010). The aid triangle: Recognising the dynamics of dominance, justice and identity. Zed Books.
Maslach, C. (1982). Burnout: The cost of caring. Prentice Hall.
McKee, M., Reeves, A., Clair, A., & Stuckler, D. (2017). Living on the edge: Precariousness and why it matters for health. Archives of Public Health, 75, 13–22.
McVeigh, J., & MacLachlan, M. (2021). The macropsychology of COVID-19: Psychological governance as pandemic response. American Psychologist. https://doi.org/10.1037/amp0000909
Megguito, M. L. M., Clemente, J. A. R., & Money & Freedom. (2017). Expanding the capability framework: Determining the relationships among income, capability gap, and organization citizenship behaviours. Asian Association of Social Psychology Conference: Making a difference with social science (pp. 26–28). Massey University Auckland.
Meyer, J. P., Allen, N. J., & Gellatly, I. R. (1990). Affective and continuance commitment to the organization: Evaluation of measures and analysis of concurrent and time-lagged relations. Journal of Applied Psychology, 75, 710–720.
Miner, A. G., Glomb, T. M., & Hulin, C. (2005). Experience sampling mood and its correlates at work. Journal of Occupational and Organizational Psychology, 78, 171–193.
Natali, L., Handa, S., Peterman, A., Seidenfeld, D., & Tembo, G. (2018). Does money buy happiness? Evidence from an unconditional cash transfer in Zambia. Social Science & Medicine, Population Health, 4, 225–235.
Neuberg, S. L., Judice, T. N., Virdin, L. M., & Carrillo, M. A. (1993). Perceived and self-presentational goals as moderators of expectancy influences: Ingratiation and the disconfirmation of negative experiences. Journal of Personality and Social Psychology, 64, 409–420.
Oishi, S., Kesebir, S., & Diener, E. (2011). Income inequality and happiness. Psychological Science, 22, 1095–1100.
Pérez-Rodríguez, V., Topa, G., & Beléndez, M. (2019). Organizational justice and work stress: The mediating role of negative, but not positive, emotions. Personality and Individual Differences, 151, Accesses on July 7, 2020, from: https://www.sciencedirect.com/science/article/abs/pii/S0191886919302776?via%3Dihub
Pfeffer, J. (2018). Dying for a pay-check: How modern management harms employee health and company performance – and what we can do about it. Harper-Collins.
Pisanti, R., van der Doef, M., Maes, S., Lazzari, D., & Violani, C. (2016). How change in psychosocial job characteristics impact burnout in nurses: A longitudinal analysis. Frontiers in Psychology, 7, 58–67.
Probst, T. M., Sinclair, R. R., Sears, L. E., Gailey, N. J., Black, K. J., & Cheung, J. H. (2018). Economic stress and well-being: Does population health context matter? Journal of Applied Psychology, 103, 959–979.
Randstad Australia. (2020). The impact of COVID-19 on workers and organisations. Randstad Australia.
Ravallion, M., Chen, S., & Sangraula, P. (2008). Dollar-a-day revisited. The World Bank Development Research Group.
Reichman, W., & Beidel, B. J. (1989). Implementation of a state police EAP. Journal of Drug Issues, 19, 369–383.
Reichman, W., & Carr, S. C. (2020). Human rights is the business of business. In N. Rubin (Ed.), Cambridge handbook of psychology and human rights (pp. 428–442). Cambridge University Press.
Schaufeli, W. B., Salanova, M., Gonzalez-Roma, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two-sample confirmatory factor analytic approach. Journal of Happiness Studies, 3, 71–92.
Sen, A. (1999). Development as freedom. Oxford University Press.
Shao, R., Rupp, D. E., Skarlicki, D. P., & Jones, K. S. (2011). Employee justice across cultures: A meta-analytic review. Journal of Management, 39, 263–301.
Shaw, J. D., & Gupta, N. (2001). Pay fairness and employee outcomes: Exacerbation and attenuation effects of financial need. Journal of Occupational and Organizational Psychology, 74, 299–320.
Spurgeon, A., Jackson, C. A., & Beach, J. R. (2001). The Life Events Inventory: Re-scaling based on an occupational sample. Occupational Medicine, 51, 287–293.
Standing, G. (2011). The precariat: The new dangerous class. Bloomsbury Academic.
Sweeney, P. D., & McFarlin, D. B. (2005). Wage comparisons with similar and dissimilar others. Journal of Occupational and Organizational Psychology, 78, 113–131.
United Nations. (2020). The sustainable development goals report 2020. United Nations.
United Nations. (2021). 17 Sustainable development goals. United Nations.
United Nations Development Programme. (2019). Beyond income, beyond averages, beyond today. United Nations Development Programme (UNDP).
United Nations Development Programme. (2020). Human development index. United Nations Development Programme (UNDP).
Viswesvaran, C., Sanchez, J. I., & Fisher, J. (1999). The role of social support in the process of work stress: A meta-analysis. Journal of Vocational Behaviour, 54, 314–334.
Walker, C. (2013). Manufacturing the right way to be in debt: Can psychologists explore the UK debt industry? Australian Journal of Community Psychology, 25, 49–59.
Wanberg, C. R., van Hooft, E. A. J., Dossinger, K., van Vianen, A. E. M., & Klehe, U. C. (2019). How strong is my safety net? Perceived unemployment insurance generosity and implications for job search, mental health, and reemployment. Journal of Applied Psychology, 105, 209–229.
Warr, P. B. (1987). Work, unemployment and mental health. Clarendon Press.
Warr, P. B. (2007). Work, happiness and unhappiness. Lawrence-Erlbaum.
Whitmore, M., Stewart, K., Pollard, J., van Belle, J., Yang, M., & van Stolk, C. (2018). Promising practices for health and wellbeing at work. Rand Corporation.
Williams, M. L., McDaniel, M. A., & Nguyen, N. T. (2006). A meta-analysis of the antecedents and consequences of pay level satisfaction. Journal of Applied Psychology, 91, 392–413.
Winefield, A. H., Tiggemann, M., & Winefield, H. R. (1993). Growing up with unemployment: A longitudinal study of its psychological impact. Routledge.
World Health Organization. (1995). The World Health Organization Quality of Life Assessment (WHOQOL): Position paper from the World Health Organization. Social Science & Medicine, 41, 1403–1409.
World Health Organization. (1996). WHOQOL-BREF: Introduction, Administration, Scoring and generic version of the assessment. World Health Organization.
World Values Survey (WVS). (2020). Findings and insights. WVS. https://www.worldvaluessurvey.org/WVSContents.jsp. Accessed April 16, 2020
Young, L., Milner, M., Edmunds, D., Pentsil, G., & Broman, M. (2014). The tenuous relationship between salary and satisfaction. Journal of Behavioural Studies in Business, 7, 1–9.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2023 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Carr, S.C. (2023). Well-Being. In: Wage and Well-being. Springer, Cham. https://doi.org/10.1007/978-3-031-19301-9_2
Download citation
DOI: https://doi.org/10.1007/978-3-031-19301-9_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-19300-2
Online ISBN: 978-3-031-19301-9
eBook Packages: Behavioral Science and PsychologyBehavioral Science and Psychology (R0)