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Journal Article

Does performance pay increase job satisfaction?

Authors

Publication date

2008

Abstract

This paper investigates the influence of performance-related pay on several dimensions of job satisfaction. In cross-sectional estimates performance-related pay is associated with increased overall satisfaction, satisfaction with pay, satisfaction with job security and satisfaction with hours. It appears to be negatively associated with satisfaction with the work itself; yet, after accounting for worker fixed effects the positive associations remain and the negative association vanishes. These results appear robust to a variety of alternative specifications and support the notion that performance-related pay allows increased opportunities for worker optimization and does not generally demotivate workers or crowd out intrinsic motivation.

Published in

Economica

Volume

75 (300):710-728

DOI

http://dx.doi.org/10.1111/j.1468-0335.2007.00649.x

Subjects

Labour Economics, Wages And Earnings, and Well Being

Links

http://serlib0.essex.ac.uk/record=b1597373~S5

Notes

Originally 'Online Early' 4 Jan.2008; Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*


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