Does How You Get Paid at Work Affect Your Time off Work? The Relationship between Performance-Related Employment Contracts and Leisure Activities

Nicole Andelic (), Julia Allan (), Keith Bender, Daniel Powell () and Ioannis Theodossiou
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Nicole Andelic: University of Aberdeen
Julia Allan: University of Stirling
Daniel Powell: University of Aberdeen

No 16886, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Recent research highlights the association of performance-related pay (PRP) and poor health. An uninvestigated potential mechanism is a lower frequency of leisure activities, since PRP incentives longer work hours. This study investigates PRP's effect on a variety of leisure pursuits. After correcting for self-selection, UK data show that PRP workers are less likely to engage in some forms of exercise and spend less time sleeping compared to non PRP workers. In addition, they are more likely to eat out and consume alcohol. Such leisure differences between PRP and salaried workers may negatively affect the health and wellbeing of PRP workers.

Keywords: performance-related pay; leisure; sleep; health (search for similar items in EconPapers)
JEL-codes: I0 J22 J33 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2024-03
New Economics Papers: this item is included in nep-hrm, nep-lma and nep-ltv
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