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Intrinsic and Extrinsic Work Orientations as Moderators of the Effect of Annual Income on Subjective Well-Being: A Longitudinal Study

University of California, Berkeley

Jennifer A. Chatman

University of California, Berkeley

Income is only weakly associated with both subjective well-being (SWB) and job satisfaction in the United States, a surprising finding in light of the importance placed on financial status in capitalistic societies. To explore this further, the authors examined intrinsic and extrinsic work orientations as potential moderators of the effects of financial compensation on SWB and job satisfaction. Master's of business administration students (N = 124) completed measures of work orientation and, 4 to 9 years later, reported their current salary, SWB, and job satisfaction. As predicted, individuals high in extrinsic orientation experienced higher SWB and job satisfaction to the degree that they earned more money, whereas those high in intrinsic orientation were lower on SWB at higher income levels. These findings are discussed in terms of the Values as Moderators Perspective of SWB and Cognitive Evaluation Theory.

Key Words: intrinsic motivation • work orientations • annual income • subjective well-being • job satisfaction

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