| Abstract: |
Using German survey data, we show conflicting influences of performance pay on
overall life satisfaction. The overall influence reflects a strong positive
influence through domains of life satisfaction associated with the job (job
satisfaction, individual earnings satisfaction and household earning
satisfaction) and a strong negative influence through domains away from the
job (health satisfaction, sleep satisfaction and family life satisfaction).
This trade-off between work and home generalizes and helps explain many
previous studies examining much more specific consequences of performance pay.
Finally, controlling for the mediating role of the domains, the direct
influence on life satisfaction is positive for women and insignificantly
different from zero for men. |