Discrimination Experience, and Psychological Well-Being Among Indonesian Workers in Australia: The Mediating Role of Psychological Safety and Moderating Role of Ethnic Identity
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Abstract
The growing mobility of Indonesian migrant workers to Australia has created greater opportunities for cross-cultural employment while simultaneously exposing workers to workplace discrimination that may undermine their psychological well-being. Although previous studies have consistently reported the adverse consequences of discrimination, the psychological mechanism through which discrimination affects well-being and the potential buffering role of ethnic identity remain insufficiently understood, particularly among Indonesian migrant workers. This study investigates the effect of discrimination experience on psychological well-being through psychological safety and examines whether ethnic identity moderates the relationship between discrimination experience and psychological well-being. A cross-sectional survey was conducted among Indonesian workers employed in various sectors across Australia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that discrimination experience has a significant negative effect on psychological safety, while psychological safety has a significant positive effect on psychological well-being. Furthermore, psychological safety fully mediates the relationship between discrimination experience and psychological well-being, suggesting that workplace discrimination influences well-being primarily by reducing employees' sense of psychological safety. Contrary to expectations, ethnic identity does not significantly moderate the relationship between discrimination experience and psychological well-being. However, ethnic identity demonstrates a positive direct association with psychological well-being. These findings extend the literature on migrant workers' well-being by highlighting psychological safety as the primary psychological mechanism linking discrimination to well-being while suggesting that ethnic identity functions as an individual psychological resource rather than a buffering factor. The study offers practical implications for organizations seeking to develop psychologically safe and inclusive workplaces for culturally diverse employees.
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