Doesn't inhibit them but makes the activity not pleasant because your mind is attaching the work itself to external motivation. You don't do it because you want to (for the pleasure of it), but for a paycheck and humans don't enjoy activities like that if they're not starving.
Honestly, I don't think there are very many people who wash dishes for pleasure. If you have a kid who loves cleaning for fun, by all means, don't pay them to do it.