as a wage determinant. We furthermore show that a promotion affects both intrinsic and extrinsic motivation significantly …, though in two different ways: An expected promotion increases extrinsic motivation whereas intrinsic motivation is highest … subsequent to a realized promotion. The relationship between extrinsic motivation and expected promotions implies that promotions …

-minimising public firm. Workers in the economy are heterogeneous in their motivation to work in the sector. In line with empirical …

the principal can neither observe agents’ commitment to the job nor their intrinsic motivation. A steep wage …

, however, with a minority of workers report crowding in of motivation. Thus, the impact of performance pay might depend on the …