Published online by Cambridge University Press: 05 May 2015
Globalisation is creating extant salary differentials across the South Pacific region, and this study explores their impact on emotional well being within the Indonesian education system. One hundred and eighty-eight local and expatriate teachers of English were classified into underpaid (n = 66 local instructors), overpaid (n = 60 expatriate instructors), and equitably paid (n = 62 local and expatriate instructors) groups, and completed a job satisfaction scale, the Beck Depression Inventory, the Beck Anxiety Inventory, and the Beck Hopelessness Scale. Consistent with Social Equity Theory (SET), both underpaid and overpaid groups had significantly less job satisfaction than the equitably paid group. Moreover, compared to their equitably paid counterparts, the underpaid and overpaid groups experienced more symptoms of depression, anxiety, and hopelessness. These findings extend SET to both quality of working life and occupational mental health.