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