Performance Pay, Sorting and the Dimensions of Job Satisfaction

Green, C; Heywood, John S.

doi:10.2139/ssrn.983910

Cited by 5 publications

(12 citation statements)

References 39 publications

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“…Heywood and Wei's (2006) analysis shows that profit sharing and PRP are associated with higher overall job satisfaction in the US, though they find evidence that piece rates in particular may have a negative effect. More recently, Green and Heywood (2008) and Pouliakas and Theodossiou (2009) use the BHPS to investigate the impact of PRP on a fuller set of facets of job satisfaction. They show that although bonuses and profit‐sharing schemes result in higher mean job satisfaction, the effect of individual‐specific PRP diminishes once unobserved heterogeneity is taken into account.…”

Section: Literature Review: the Impact Of Incentive Pay On Job Samentioning

confidence: 99%

“…The study of the effect of monetary rewards on job satisfaction is therefore an empirical issue, which has only until recently received any attention. In particular, a number of studies have shown that in Britain bonuses result in higher job satisfaction, although the effect of individual‐based performance‐related pay (PRP) systems is not as clear‐cut once unobserved heterogeneity is taken into account (Drago et al, 1992; McCausland et al, 2005, Artz, 2008, Green and Heywood, 2008; Pouliakas and Theodossiou, 2009). Using US data, Heywood and Wei (2006) have also confirmed that all types of PRP (bar piece‐rates) yield greater job satisfaction relative to time rates.…”

Section: Introductionmentioning

confidence: 99%

“…To the extent that incentive schemes allow for optimization of effort, facilitate worker autonomy and enhance self‐determination they should increase job satisfaction, other things equal. Yet increasing earnings risk, crowding out of the inherent pleasantness in performing one's job and lower morale can lead to disgruntled employees. Based on the above reasoning, a number of previous studies have focussed on the impact of the incidence of PRP on job satisfaction (Drago et al, 1992; McCausland et al ., 2005; Heywood and Wei, 2006; Green and Heywood, 2008; Artz, 2008; Pouliakas and Theodossiou, 2009). This masks the possibility that the utility of workers may vary according to the magnitude and intensity of incentives, as suggested by the experiments of Gneezy and Rustichini (2000[a][b]) and Pokorny (2008).…”

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confidence: 99%

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Pay Enough, Don't Pay Too Much or Don't Pay at All? The Impact of Bonus Intensity on Job Satisfaction

Pouliakas

2010

Kyklos

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Using ten waves (1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007) of the British Household Panel Survey (BHPS), this paper investigates the ceteris paribus association between the intensity of incentive pay, the dynamic change in bonus status and the utility derived from work. After controlling for individual heterogeneity biases, it is shown that job utility rises only in response to "generous" bonus payments, primarily in skilled, non-unionized, private sector jobs. Revoking a bonus from one year to the next is found to have a detrimental impact on employee utility, while job satisfaction tends to diminish over time as employees potentially adapt to bonuses. The findings are therefore consistent with previous experimental evidence, suggesting that employers wishing to motivate their staff should indeed "pay enough or don't pay at all". AcknowledgmentsThe author would like to thank I.Theodossiou, G.Panos and two anonymous referees for helpful comments and assistance during the preparation of this manuscript. The usual disclaimer applies.

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Section: Literature Review: the Impact Of Incentive Pay On Job Samentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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confidence: 99%

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Pay Enough, Don't Pay Too Much or Don't Pay at All? The Impact of Bonus Intensity on Job Satisfaction

Pouliakas

2010

Kyklos

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“…Many psychologists and economists have studied the relationship between job and health; some of the latest studies have been undertaken with new methods and approaches [8,9,10,11,12]. For example, Fischer and Sousa-Poza [9] evaluate the association between job satisfaction and workers’ health status using a fixed effects model, controlling for unobserved individual heterogeneity with panel data.…”

Section: Literature Reviewmentioning

confidence: 99%

What Can We Obtain from Mental Health Care? The Dynamics of Physical and Mental Health

Yoon

2019

IJERPH

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This study analyzes the dynamic interaction of an individual’s physical and mental health using the German Socio-Economic Panel and the Cross-National Equivalent File of Germany. Its main objective is to find a way to reduce people’s health expenditure by examining the magnitude of the interdependence between physical and mental health. For the analysis, this study develops a dynamic correlated random effects model. We create two aggregate health measures (aggregate physical health and aggregate mental health) with four submeasures each, which provides a better understanding of changes in an individual’s health status by capturing additional information that cannot be analyzed at the aggregate level. There is clear evidence that the persistence of a mental health condition is less than that of a physical health condition. Moreover, the impact of previous mental health on current physical health is greater than that of previous physical health on current mental health. This suggests that individuals can reduce their expenditures on physical health problems by focusing on the treatment of mental problems when they first arise. Finally, the Government’s attention and support toward mental health care would lead to a reduction in health expenditures and eventually improve the sustainability of the nation’s health system.

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“…Individual contentment arising from a job does not only depend on the absolute level of wage, but also on its changes (Grund and Sliwka, 2007), on the comparison with the relative income in general (Clark and Oswald, 1996) and, in particular, with co-worker wages (Clark et al, 2009). It has also been shown that, when the wage is linked to individual performance, it is generally associated with an increase in overall job satisfaction and that workers with greater ability tend to move to performance pay jobs (Artz, 2008;Cornelissen et al, 2011;Green and Heywood, 2007b).…”

Section: Monetary Compensationmentioning

confidence: 99%

Measuring Job Satisfaction withCUBModels

Gambacorta

Iannario

2013

Labour

123

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In this paper we present two statistical approaches for discussing and modelling job satisfaction based on data collected in the Survey on Household Income and Wealth (SHIW) conducted by the Bank of Italy. In particular, we analyse these data by means of a mixture model introduced for ordinal data and compare results with the Ordinal Probit model. The aim is to establish common outcomes and differences in the estimated patterns of global job satisfaction, but also to stress the potential for curbing the effects of measurement errors on estimates by using CUB models [a Combination of discrete Uniform and (shifted) Binomial distributions], allowing control for the effect of uncertainty and shelter choices in the response process.

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Performance Pay, Sorting and the Dimensions of Job Satisfaction

Cited by 5 publications

References 39 publications

Pay Enough, Don't Pay Too Much or Don't Pay at All? The Impact of Bonus Intensity on Job Satisfaction

Pay Enough, Don't Pay Too Much or Don't Pay at All? The Impact of Bonus Intensity on Job Satisfaction

What Can We Obtain from Mental Health Care? The Dynamics of Physical and Mental Health

Measuring Job Satisfaction withCUBModels

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