Performance pay, work hours and employee health in the UK

Colin Green () and John Heywood

Labour Economics, 2023, vol. 84, issue C

Abstract: 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.

Keywords: Performance related pay; Working hours (search for similar items in EconPapers)
JEL-codes: J22 J33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:84:y:2023:i:c:s0927537123000623

DOI: 10.1016/j.labeco.2023.102387

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