Underemployment and relative deprivation among re-employed executives

Using a sample of 517 executives who lost their jobs as a result of downsizing, this study examined underemployment among managers in replacement jobs taken after their layoffs. Laid-off executives who were re-employed in jobs which paid less, were at lower levels of organizational hierarchies and which did not fully utilize their skills had consistently lower job attitudes. In addition, the results suggest that relative deprivation is an important mediator in explaining how underemployment leads to poorer psychological well-being in those replacement jobs. The article concludes with directions for future research on underemployment and relative deprivation in the aftermath of layoffs.