Why do workers exert more effort when they are paid higher salaries?

What will be an ideal response?

The higher the wage rate, the more effort an individual worker exerts. There are several potential reasons for this relationship . First, higher-paid workers might wish to work harder because a higher-paying job is more valuable to them, and the risk of not succeeding in this job—and thus having to quit or be fired—becomes potentially more costly. Second, higher wages might encourage workers to stay longer in the company, reducing turnover. The resulting longer employment relationships may increase worker experience and productivity, and may also directly increase profits by reducing turnover costs. Third, higher pay might motivate the worker psychologically. For example, workers who perceive generosity from their employers may perceive this as a "gift" and reciprocate by working harder.