Journal Article

Confronting objections to performance pay: the impact of individual and gain-sharing incentives on job satisfaction

Authors

Publication date

2009

Abstract

The increasing use of incentive pay schemes in recent years has raised concerns about their potential detrimental effect on intrinsicjob satisfaction (JS), job security and employee morale. This study explores the impact of pay incentives on the overall JS of workers in the United Kingdom and their satisfaction with various facets of jobs. Using data from eight waves (1998-2005) of the British Household Panel Survey (BHPS) and a uniquely designed well-being dataset (EPICURUS), a significant positive impact on JS is only found for those receiving fixed-period bonuses. These conclusions are robust to unobserved heterogeneity, and are shown to depend on a number of job-quality characteristics that have not been controlled for in previous studies.

Published in

Scottish Journal of Political Economy

Volume

56 (5):662-684

DOI

http://dx.doi.org/10.1111/j.1467-9485.2009.00502.x

Subjects

Management: Business, Economics, Wages And Earnings, and Well Being

Links

http://serlib0.essex.ac.uk/record=b1587548~S5

Notes

Web of Knowledge alert; Wiley alert; Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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