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Research on the effects of two-tier wage plans found that

lower-paid employees were less satisfied on average than higher-paid employees.

lower-paid employees were more satisfied on average than higher-paid employees.

lower-paid employees expected to be promoted into the second tier in a short time span.

equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other.

? ?both existing employees and new employees had a similar pay rate.

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