This study investigated the mental health significance of Barack Obama’s 2012 presidential re-election among Blacks. Upon his re-election, we hypothesized Blacks would either feel symbolic empowerment or relative deprivation. They would feel symbolic empowerment because a man who identifies as Black won re-election to the nation’s highest office. His second victory should generate optimism, given his status as a historic first. Alternatively, they would feel relative deprivation because The Great Recession from 2007 to 2009 curtailed what Obama could achieve. More important, he withered when afforded opportunities to challenge White supremacy and championed individual responsibility. Using a quasi-experimental design with nationally representative survey data from the 2012 Behavioral Risk Factor Surveillance System (BRFSS), we predicted Blacks’ preelection and postelection poor mental health days. We found no time period main effects. However, Black men with less than a college degree experienced 1.11 more poor mental health days postelection whereas Black men with a college degree or more experienced 2.93 fewer poor mental health days postelection. These findings support relative deprivation theory.

There is still an ongoing debate regarding the firm performance implications of pay gaps between top executives and subordinate employees. This study integrates relative deprivation theory and tournament theory to investigate the potential nonlinear effects of pay gaps. We expect that at low levels of pay inequality, increased inequality hurts firm productivity, while at higher levels of pay inequality, increased inequality helps firm productivity. Our study of Chinese firms confirms that pay gaps have an approximately U-shaped relationship with firm performance. This nonlinear relationship is weaker in state-owned enterprises (SOEs) than in non-SOEs, suggesting that state ownership is an important moderator in the association. Overall, this study explains previous mixed findings regarding consequences of pay gaps with meaningful implications for policymakers and entrepreneurs in China and other economies with similar cultural and institutional backgrounds.