Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36336
Authors: 
Pouliakas, Konstantinos
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers 4713
Abstract: 
Using ten waves (1998-2007) 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.
Subjects: 
Incentives
intensity
bonus
performance pay
job satisfaction
JEL: 
C23
J28
J33
M52
M54
Document Type: 
Working Paper

Files in This Item:
File
Size
631.64 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.