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Does Performance Pay Increase Job Satisfaction

Bibliographic Data

ID9723714
AuthorsColin Green (0000-0003-3459-6298), John S Heywood (0000-0001-9600-2462, University of Wisconsin–Milwaukee)
Year2008
Volume75
Issue300
Pages710-728
Publication date2008-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2007.00649.x
OpenAlexW1990047182
LanguageEN
Citations received23
References cited42

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

Association (psychology) · Demographic economics · Economics · Job attitude · Job performance · Job satisfaction · Job security · Statistics · Variety (cybernetics) · Work (physics) · Employment and Welfare Studies · Engineering · Experimental Behavioral Economics Studies · Mathematics · Psychological Well-being and Life Satisfaction · Psychology · Social Psychology

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Unique citing works23
Citations per year1,35
Citation span2009 - 2025 (17)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 19

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