Towards ‘Dirty Realism’ in Inequality Research: is Inequality Always Dirty?

Abstract

We contribute to research on organizations and inequality by providing a more nuanced picture of how organizations – through their employment practices – shape the negative consequences of income inequality. We reply to a recent call for more ‘dirty realism’ in inequality research by extending the research focus to actual life satisfaction consequences for individuals facing inequality. Building on procedural utility theory and self-determination theory, we hypothesize that adverse effects of disadvantaged income positions on individuals’ life satisfaction can be mitigated by the way organizations arrange work. We find empirical support for two important aspects of individuals’ job quality mitigating the negative effects of disadvantaged income positions: individuals in disadvantaged income positions perceive a relatively lower decrease in life satisfaction when their levels of job autonomy and job security are high. In sum, we find that income inequality is always ‘dirty’, but less so when individuals have job autonomy and job security. We conclude with a discussion of the research implications of emphasizing employment practices as a key determinant for shaping the impact of income inequality on overall life satisfaction in society.