Title
Performance pay and job satisfaction
Document Type
Journal article
Source Publication
Journal of Industrial Relations
Publication Date
9-1-2006
Volume
48
Issue
4
First Page
523
Last Page
540
Keywords
job satisfation, ordered probit, performance pay, piece rates
Abstract
This article estimates the direct effect of performance pay schemes on job satisfaction for a representative sample of US workers. Both individual performance pay and profit sharing are routinely associated with higher satisfaction even as the level of pay and a long list of other determinants are held constant. This result holds in panel estimates designed to control for fixed effects. When individual performance pay is disaggregated into five specific schemes, all but one associate with higher satisfaction and piece rates associate with lower satisfaction. The role of gender is explored as an explanation for the results.
DOI
10.1177/0022185606066143
Print ISSN
00221856
E-ISSN
14729296
Publisher Statement
Copyright © Industrial Relations Society of Australia
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Heywood, J. S., & Wei, X. (2006). Performance pay and job satisfaction. Journal of Industrial Relations, 48(4), 523-540. doi: 10.1177/0022185606066143
