Performance‐Related Pay and the Crowding Out of Motivation in the Public Sector: A Randomized Field Experiment

This article advances our understanding of the effects of monetary rewards on public employee performance and of the contingencies that may moderate these effects. In a randomized control‐group experiment with nurses working at a local health authority in Italy, performance‐related pay ( PRP ) had a larger effect on task performance when the rewards were kept secret than when they were disclosed. The negative interaction between PRP and...