TY - RPRT AU - Baktash, Mehrzad B. AU - Heywood, John S. AU - Jirjahn, Uwe TI - Performance Pay and Happiness: Work vs. Home? PY - 2025/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18181 UR - https://www.iza.org/index.php/publications/dp18181 AB - Using German survey data, we show conflicting influences of performance pay on overall life satisfaction. The overall influence reflects a strong positive influence through domains of life satisfaction associated with the job (job satisfaction, individual earnings satisfaction and household earning satisfaction) and a strong negative influence through domains away from the job (health satisfaction, sleep satisfaction and family life satisfaction). This trade-off between work and home generalizes and helps explain many previous studies examining much more specific consequences of performance pay. Finally, controlling for the mediating role of the domains, the direct influence on life satisfaction is positive for women and insignificantly different from zero for men. KW - well-being KW - life satisfaction KW - performance pay KW - satisfaction domains KW - gender ER -