Although a positive relationship between employee perceived pay inequity and psychological distress is well established in the organizational behavior literature, the moderating roles of employee demographic characteristics in this link remain unexplored. This study aims to address this gap by examining the moderating effects of gender and age on the relationship between perceived pay inequity and psychological distress in the Egyptian context. Structural equation modeling was used to analyze cross-sectional data obtained through an online survey of 202 Egyptian employees from multiple industries, including 114 men and 88 women. Participant ages ranged from 21 to 61 years, with a mean age of 35.5 years (SD = 9.04). The findings reveal a significant positive relationship between perceived internal pay inequity and psychological distress and that this relationship is significantly stronger among men and gets significantly weaker with age. Results elucidate the mechanism through which perceived pay inequity relates to psychological distress through examining the moderating roles of employee gender and age in the link. This can help human resource practitioners understand why some employees may exhibit stronger negative responses to perceived pay inequity without attributing such inconsistencies to false grounds such as equity sensitivity differences.
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