Crowding Out Public Service Motivation? Comparing Theoretical Expectations with Empirical Findings on the Influence of Performance-Related Pay

Abstract

This article draws on a sample of city managers, assistant city managers, and department heads in U.S. local government jurisdictions to examine whether theoretical assertions about the relationships between performance-related pay, public service motivation, and employee job satisfaction hold empirical merit. Contrary to theoretical expectations, findings from an ordered logistic regression and a series of Monte Carlo simulations suggest performance-related pay is associated with greater job satisfaction, especially among employees who possess stronger public service motives. Results also suggest variable pay may be particularly important to employees who have lower levels of public service motivation.

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