Despite the rhetoric of a single global economy, professionals in poorer countries continue to be remunerated differently depending on whether they are compensated at a local vs. international rate. Project ADDUP (Are Development Discrepancies Undermining Performance?) surveyed 1290 expatriate and local professionals (response rate = 47%) from aid, education, government, and business sectors in (1) Island Nations (Papua New Guinea, Solomon Islands), (2) landlocked economies (Malaŵi, Uganda), and (3) emerging economies (India, China). Difference in pay was estimated using purchasing power parity, from the World Bank's World Development Indicators 2007. Psychological measures included self-reported pay and benefits (remuneration), self-attributed ability, remuneration comparison, sense of justice in remuneration, remuneration-related motivation, thoughts of turnover and thoughts about international mobility. We included control measures of candour, culture shock, cultural values (horizontal/vertical individualism/collectivism), personality (from the "big five"), job satisfaction and work engagement. Controlling for these and country (small effects) and organization effects (medium), (a) pay ratios between international and local workers exceeded what were perceived to be acceptable pay thresholds among respondents remunerated locally; who also reported a combination of a sense of relative (b) injustice and demotivation; which (c) together with job satisfaction/work engagement predicted turnover and international mobility. These findings question the wisdom of dual salary systems in general, expose and challenge a major contradiction between contemporary development policy and practice, and have a range of practical, organizational, and theoretical implications for poverty reduction work.
Purpose -The purpose of this paper is to develop and test a measure of relationships and learning within the aid context. Design/methodology/approach -The Aid Relationships Quality Scale (ARQS) was administered to 1,290 local and expatriate workers across six countries in three regions (Africa: Malawi, Uganda; Asia: India, China; Oceania: PNG, Solomon Islands), as part of a larger study exploring remuneration differences. Data were factor-analysed and explored using correlations. Individual and organisational level variance was partialed out in the analyses. Findings -The ARQS showed a stable factor structure and acceptable reliability for each subscale: "relationship with expatriates", "relationship with locals", and "learning from expatriates and locals". Construct validity was examined using a modification of the Multitrait-Multimethod Matrix. For the sample as a whole, and at the individual level, both relationships subscales were positively correlated with each other, job satisfaction, and "learning from expatriates and locals". At the organisational level "relationship with expatriates" correlated positively with pay justice, and international mobility, and negatively with de-motivation, pay comparison and self-assessed ability. "Relationships with locals" correlated positively with self-assessed ability, turnover, and job satisfaction, and negatively with pay justice. The convergent and discriminant correlation patterning is largely in line with theory and thus supports the construct validity of the scale. Originality/value -Relationships between aid workers are integral to the success of development assistance initiatives. This research has developed a new and brief instrument for measuring one aspect of aid relationships -that between expatriate and local workers.
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