Monetary Rewards and Job Satisfaction: A Comparison between the United States and China

Abstract

In the US, literature in management field assuming a strong positive link between monetary rewards and job satisfaction in theoretical studies, however, empirical studies show weak, even non-related, link between the two variables. Very limited studies have provided evidences outside the US. The purpose of the present study is to examine similarity and difference of the relation between monetary rewards and job satisfaction in two counties, the US and China. It answers two basic questions: Does money improve job satisfaction? And, does money works in the same way in the US and China? Survey based data are analyzed using partial least square (PLS) based structural equation modeling (SEM). The result shows Money does not improve job satisfaction in the US. In China, similarly, money only marginally increases satisfaction. In both countries, intrinsic motivation is the main contributor to job satisfaction.