Political-Economic Context and Sensitivity to Equity: Differences between the United States and the Transition Economies of Central and Eastern Europe

Abstract

Recent labor economics studies suggest that low enterprise productivity in former socialist economies can be corrected by adopting reward systems emphasizing compensation for performance. We used the equity sensitivity construct to test for differences in the attitudes toward equity of business students from the United States and five countries of Central and Eastern Europe. “Entitlement attitudes” were more pervasive in the transition economies of Central and Eastern Europe than in the United States, suggesting U.S. compensation practices may not be directly applicable in that region.