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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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