Topic 6 Paper: (Green & Heywood 2008) Flashcards
State the aim of Green & Heywood (2008)
Investigates the influence of performance related pay on several dimensions of job satisfaction, giving results prior to and after controlling for fixed affects.
In Green & Heywood (2008), Do performance related pay schemes increase worker productivity?
Yes, background literature has demonstrated this
In What data does the paper Green & Heywood (2008) use?
British Household Panel Survey (BHPS)
- nationally representative sample of ~10000 individuals in ~5500 households
- Using 1998-2004
- Individuals from 20-65 who are not self employed
In Green & Heywood (2008), Why might performance pay schemes lead to job dissatisfaction?
- If evaluations are subjective, random
- stress from monitoring
- reduced satisfacting from randomness in earnings (risk)
- bigger pay dispersion, inequality in firm
In Green & Heywood (2008), why do fixed affects have to be countered in this model?
Because workers who are risk adverse will prefer performance related schemes, the model assumes that workers are randomly distributed between jobs.
In Green & Heywood (2008), what results are found without countering for fixed affects / worker selection
Performance pay positively correlated with pay satisfaction, but negatively correlated with job satisfaction
In Green & Heywood (2008), what results are found after countering for fixed affects / worker selection
Performance pay positively correlated with pay satisfaction, no correlation with job satisfaction, positively correlated with job security. No evidence that such schemes demotivate workers, lower morale or crowd out intrinsic motivation
What other variables are shown to affect job satisfaction in Green & Heywood (2008)
- Education level & firm size decrease it
- Union members less satisfied, public sector more satisfied
- Females have significantly higher job satisfaction
