Extrinsic rewards in public sector may harm intrinsic motivation.
Motivational crowding is when external rewards affect how much we enjoy doing something. These rewards can either decrease or increase our natural motivation, depending on how we see them. The research in this chapter looks at when this happens and why. It also talks about how this affects people working in the public sector, like government employees. Factors like how they are motivated, how they are paid, and the rules they have to follow can all impact their motivation. The chapter suggests more research is needed in this area.