Performance-related pay, mental and physiological health

Publication type

Journal Article

Authors

Publication date

January 15, 2024

Summary:

Much of the literature on performance-related pay (PRP) and poor health relies on self-reported data, and the relationship is difficult to examine due to confounding variables. We examine the relationship between PRP and three groups of health measures using data from the UKHLS: blood pressure, inflammation markers in blood, and self-reported health. Regressions correcting for self-selection bias and socio-demographic covariates find that PRP contracts are associated with poorer mental health, higher systolic blood pressure, and higher levels of fibrinogen. These findings suggest that firms that use PRP may need to implement policies to mitigate against PRP-related stress.

Published in

Industrial Relations

Volume and page numbers

Volume: 63 , p.3 -25

DOI

https://doi.org/10.1111/irel.12334

ISSN

198676

Subjects

Notes

Open Access

© 2023 The Authors. Industrial Relations published by Wiley Periodicals LLC on behalf of Regents of the University of California (RUC).

This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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