Relative income and value congruence in dual‐income couples

Abstract

SummaryGuided by social role theory, social science research has established an individual's earnings relative to their partner (i.e., their relative income) as an important indicator of various marital‐ and well‐being‐related outcomes. Yet, despite a deep interest in employee compensation systems, management scholars have rarely considered the implications of relative income for workers. To address this oversight, we consider how the conformity values of dual‐income couples jointly predict relative income and how this relationship varies by gender. Further, we examine how relative income predicts employees' subjective career success and explore potential boundary conditions to this relationship. Using a time‐lagged study in a sample of 225 dyads, results from moderated polynomial regression analyses indicate that dyadic congruence in conformity values predicts relative income in a gender‐dependent way. Additionally, moderated multilevel regression analyses illustrate that respondents with lower absolute income display a stronger positive relationship between relative income and subjective career success. Relative income's effects on subjective career success do not depend on gender. We discuss the theoretical and practical implications of our findings regarding gender, conformity values, relative income, absolute income, and subjective career success.