“A little is better than zero” or “pay enough or don’t pay at all”? evidence on the size of pay-for-performance across the sectors

• Main Author: Chen, Chung-An
• Other Authors: School of Social Sciences
• Format: Article
• Language: English
• Published: 2019
• Subjects: Performance Pay; Pay Size; Social sciences::General
• Online Access: https://hdl.handle.net/10356/85301; http://hdl.handle.net/10220/49196
• Institution: Nanyang Technological University

Regarding the effect of pay-for-performance (PFP), standard economic reasoning suggests that “a little is better than zero,” meaning that even small performance payments can improve employees’ work morale. An alternative view, “pay enough or don’t pay at all,” suggests that paying too little may ins...