Does Physical Exercise Affect Tradeoffs between Fixed Pay and Performance-related Pay for Individuals?

Weiyi Zhang, Hiromasa Takahashi and Junyi Shen
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Weiyi Zhang: Graduate School of Economics, Kobe University

No DP2016-13, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: Much of the literature on performance-related pay has discussed the relationships with risk attitude, job satisfaction, sorting effects, amongst other factors. This paper focuses on the relationship between individual preferences for physical exercise or sports and the tradeoff between fixed and performance-related pay. First, a choice experiment is used to identify the individual preference for payments, and the tradeoff between fixed and performance-related pay. Next, OLS regression models are used to link the tradeoff with individual preference for physical exercise or sports. The results show that such a preference has a positive and significant influence on individuals' tradeoff of payments. For individuals who like physical exercise or sports more, who are better at them, and who take part in them more frequently, are more likely to prefer performance-related pay.

Keywords: Physical exercise; Sports; Fixed pay; Performance-related pay; Tradeoff (search for similar items in EconPapers)
JEL-codes: C35 J33 Z22 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2016-03
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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