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

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Full-text Version

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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