Are wages more important for employees in poorer countries with harsher climates?

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Abstract

The purpose of the present research was to demonstrate that the perceived importance of wages is a function of thermal climate and national wealth. As hypothesized, analyses of 37 nationally representative samples of 22 483 blue- and white-collar workers and 5544 managers show that wages are perceived as more important in poorer countries with colder climates (e.g., Azerbaijan) than in richer countries with colder climates (e.g., Canada) and in poorer and richer countries with temperate climates (e.g., Uganda, Singapore). The results suggest that performance-related pay may be most effective in poorer countries with colder climates. Copyright © 2007 John Wiley & Sons, Ltd.

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