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The Role of Firm Size and Performance Pay in Determining Employee Job Satisfaction Brief: Firm Size, Performance Pay, and Job Satisfaction


  • Benjamin Artz


Job satisfaction reflects the on-the-job utility of workers and has been found to influence both the behavior of workers and the productivity of firms. Performance pay remains popular and widely used to increase worker productivity and more generally align the objectives of workers and firms. Yet, its impact on job satisfaction is ambiguous. Whereas the increased earnings increase job satisfaction, the increased effort and risk decreases job satisfaction. This paper finds empirical evidence that on net performance pay increases job satisfaction but does so largely among union workers and males in larger firms. Copyright 2008 The Author. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2008.

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  • Benjamin Artz, 2008. "The Role of Firm Size and Performance Pay in Determining Employee Job Satisfaction Brief: Firm Size, Performance Pay, and Job Satisfaction," LABOUR, CEIS, vol. 22(2), pages 315-343, June.
  • Handle: RePEc:bla:labour:v:22:y:2008:i:2:p:315-343

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    References listed on IDEAS

    1. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
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    Cited by:

    1. Tao, Hung-Lin, 2015. "Multiple earnings comparisons and subjective earnings fairness: A cross-country study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 45-54.
    2. Zivkovic, Sanja & Hudson, Darren & Johnson, Phillip & Park, John, 2016. "A Study in Attitudes Shaping Cooperative Leadership," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229588, Southern Agricultural Economics Association.
    3. Okemena Onemu, 2014. "Social Relations, Incentives, and Gender in the Workplace," Tinbergen Institute Discussion Papers 14-009/VII, Tinbergen Institute.
    4. Nikolai Botev, 2015. "Could Pronatalist Policies Discourage Childbearing?," Population and Development Review, The Population Council, Inc., vol. 41(2), pages 301-314, June.
    5. Lai, Yanqing & Saridakis, George & Blackburn, Robert & Johnstone, Stewart, 2016. "Are the HR responses of small firms different from large firms in times of recession?," Journal of Business Venturing, Elsevier, vol. 31(1), pages 113-131.

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