Most discussion of incentivizing assumes that higher pay leads to higher performance. The logic is that higher pay leads to wanting more to keep the job, which leads to higher performance.
This assumption is standard in the minimum wage debates. The idea is that if workers are paid $7 an hour they are more likely to want to keep the job than if they get paid $3 an hour. And if they want to keep the job, they will work harder.
I suspect this argument breaks down when one gets to higher paying jobs that have many markets.
This assumption is standard in the minimum wage debates. The idea is that if workers are paid $7 an hour they are more likely to want to keep the job than if they get paid $3 an hour. And if they want to keep the job, they will work harder.
I suspect this argument breaks down when one gets to higher paying jobs that have many markets.
It also breaks down when working harder doesn’t contribute much to keeping the job, as may be the case for congresspeople.