Performance pay, work hours and employee health in the UK

Publication type

Journal Article

Authors

Publication date

October 15, 2023

Summary:

A large body of research links performance pay to poorer worker health. The mechanism generating this link remains in doubt. We examine a common suspect, that performance pay causes employees to work longer hours in pursuit of higher pay. Using UK data, we demonstrate that performance pay is associated with more work hours and a higher probability of working long hours. Yet approximately two thirds of these differences reflect worker sorting rather than behavioral change. The remaining effects are small except those for labourers. Indeed, controlling for hours of work does not diminish the link between worse self-reported health and performance pay.

Published in

Labour Economics

Volume

Volume: 84:102387

DOI

https://doi.org/10.1016/j.labeco.2023.102387

ISSN

9275371

Subjects

Notes

Open Access

Under a Creative Commons license

#557797

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