%0 Report %A Huffman, David B. %A Bognanno, Michael L. %T High-Powered Performance Pay and Crowding out of Non-Monetary Motives %D 2018 %8 2018 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 11920 %U https://www.iza.org/index.php/publications/dp11920 %X A previous literature cautions that paying workers for performance might crowd out non-monetary motives to work hard. Empirical evidence from the field, however, has been based on between-subjects designs that are best suited for detecting crowding out due to low-powered incentives. High-powered incentives in the workplace tend to increase output, but it is unknown whether this masks crowding out. This paper uses a within-subject experimental design and finds evidence that crowding out also extends to high-powered incentives, in a real work setting with paid workers. There is individual heterogeneity, however, with a minority of workers report crowding in of motivation. Thus, the impact of performance pay might depend on the mix of worker types. %K intrinsic motivation %K incentives %K non-cognitive skills %K experiment