Pay Equity, Unionization, and Teacher Performance in Uganda’s Public Education Sector

This study examines how perceived pay equity affects staff performance in low-resource public-service environments. Using an integrated framework of Equity Theory, Herzberg’s Two-Factor Model, and the Job Demands-Resources (JD-R) Framework, the study evaluates job satisfaction as a mediating psychological bridge, and resource availability and unionization as critical operational and institutional moderators. We analyze survey data from 400 educators across primary, secondary, and tertiary institutions in Uganda using Covariance-Based Structural Equation Modeling (CB-SEM). The findings show that pay equity predicts staff performance directly (β = 0.245, p < 0.001) and indirectly through job satisfaction (β = 0.159, p = 0.001). Resource availability positively moderates the equity-satisfaction relationship (β = 0.235, p < 0.001), whereas unionization shows a weak, non-robust effect (β = 0.086, p = 0.039; 95% BC CI [-0.041, 0.204]). Compensation reforms must align with resource provisioning to optimize service delivery, in line with Equity Theory principles.