“…The Average Assumption Research into socioeconomic inequality has studied the impact of income on various outcomes and been confronted with the problem of how to integrate contradictory information from a variety of referents. The most common method is to average the difference between a person's income and the income of others' in their society to generate an index (e.g., Gini coefficient) and then use this index to predict social inequality, poverty, and individual well-being (e.g., Deaton, 2003;Ren & Pan, 2016;Yitzhaki, 1979). Recently, organization studies scholars have adopted a similar method to calculate relative salary level and then used it to predict current or subsequent work outcomes such as pay satisfaction, voluntary turnover, and performance (e.g., Connelly et al, 2016;Harris et al, 2008;Torre et al, 2015).…”