Anecdotally, neither I nor my friends have seen this happen. Putting in more effort just leads to an increased workload along with a "Meets Expectations" during annual reviews. I have a great manager now but their hands are tied as far as bonuses, promotions, and raises go. It's a bad sign when the best benefit I get is that my workload isn't cranked up because I complete tasks more efficiently.

I'm still young, but I doubt that I'll see anything similar to a bonus or significant pay raise due to performance in my career. I still put in my best effort, but I don't see any reason to take a pay hit to get better working conditions if I'm not going to get rewarded later down the line like you assume will happen.