Equity theory partially explains the basic notion of perceived inequity between one's view of his or her contribution and the contribution of others in similar contexts.

Equity theory posits that individuals compare their inputs (such as effort, skills, and experience) to their outcomes (such as pay, recognition, and satisfaction) with those of others in similar situations. If an individual perceives that their inputs and outcomes are not fairly matched compared to others, it can lead to a sense of inequity or unjust treatment. Therefore, equity theory does partially explain the basic notion of perceived inequity between one's view of their contribution and the contribution of others in similar contexts.