Journal Article

The unintended consequences of the rat race: the detrimental effects of performance pay on health

Authors

Publication date

2014

Summary

Although performance pay schemes have been linked to labour market productivity, one unintended consequence, suggested early by Adam Smith, is that performance pay is detrimental to health. Recent research has shown that there is a positive relationship between performance pay and injuries on the job. This article focusses on the consequences of performance pay on health and investigates if there is a link between performance pay and self-reported general health or specific illnesses. Using data from the British Household Panel Survey, this study uses survival analysis to show that being in jobs with a performance pay element increases the likelihood of health deterioration, ceteris paribus.

Published in

Oxford Economic Papers

Volume and page numbers

66 , 824 -847

DOI

http://dx.doi.org/10.1093/oep/gpt032

ISSN

16

Subjects

Labour Economics, Wages And Earnings, and Health

Links

http://serlib0.essex.ac.uk/record=b1607753~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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