IDEAS home Printed from https://ideas.repec.org/a/bla/indres/v63y2024i1p3-25.html
   My bibliography  Save this article

Performance‐related pay, mental and physiological health

Author

Listed:
  • Nicole Andelic
  • Julia Allan
  • Keith A. Bender
  • Daniel Powell
  • Ioannis Theodossiou

Abstract

Much of the literature on performance‐related pay (PRP) and poor health relies on self‐reported data, and the relationship is difficult to examine due to confounding variables. We examine the relationship between PRP and three groups of health measures using data from the UKHLS: blood pressure, inflammation markers in blood, and self‐reported health. Regressions correcting for self‐selection bias and socio‐demographic covariates find that PRP contracts are associated with poorer mental health, higher systolic blood pressure, and higher levels of fibrinogen. These findings suggest that firms that use PRP may need to implement policies to mitigate against PRP‐related stress.

Suggested Citation

  • Nicole Andelic & Julia Allan & Keith A. Bender & Daniel Powell & Ioannis Theodossiou, 2024. "Performance‐related pay, mental and physiological health," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(1), pages 3-25, January.
    • Handle: RePEc:bla:indres:v:63:y:2024:i:1:p:3-25
    DOI: 10.1111/irel.12334
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irel.12334
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irel.12334?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2022. "Worker stress and performance pay: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 276-291.
    2. Keith A. Bender & Susan M. Donohue & John S. Heywood, 2005. "Job satisfaction and gender segregation," Oxford Economic Papers, Oxford University Press, vol. 57(3), pages 479-496, July.
    3. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    4. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, March.
    5. Wo[ss]mann, Ludger & West, Martin, 2006. "Class-size effects in school systems around the world: Evidence from between-grade variation in TIMSS," European Economic Review, Elsevier, vol. 50(3), pages 695-736, April.
    6. Keith Bender & Colin Green & John Heywood, 2012. "Piece rates and workplace injury: Does survey evidence support Adam Smith?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 569-590, January.
    7. Allan, Julia L. & Andelic, Nicole & Bender, Keith A. & Powell, Daniel & Stoffel, Sandro & Theodossiou, Ioannis, 2021. "Employment contracts and stress: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 360-373.
    8. Benjamin Artz & John S. Heywood, 2015. "Performance Pay and Workplace Injury: Panel Evidence," Economica, London School of Economics and Political Science, vol. 82, pages 1241-1260, December.
    9. John S. Heywood & W. S. Siebert & Xiangdong Wei, 1997. "Payment by Results Systems: British Evidence," British Journal of Industrial Relations, London School of Economics, vol. 35(1), pages 1-22, March.
    10. Grund, Christian & Sliwka, Dirk, 2010. "Evidence on performance pay and risk aversion," Economics Letters, Elsevier, vol. 106(1), pages 8-11, January.
    11. Cutler, David M. & Lleras-Muney, Adriana, 2010. "Understanding differences in health behaviors by education," Journal of Health Economics, Elsevier, vol. 29(1), pages 1-28, January.
    12. Benzeval, Michaela & Davillas, Apostolos & Kumari, Meena & Lynn, Peter, 2014. "Understanding Society: The UK Household Longitudinal Study Biomarker User Guide and Glossary," MPRA Paper 114713, University Library of Munich, Germany.
    13. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    14. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    15. Benjamin Artz & Colin P. Green & John S. Heywood, 2021. "Does performance pay increase alcohol and drug use?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 969-1002, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2022. "Worker stress and performance pay: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 276-291.
    2. Mehrzad B. Baktash & John S. Heywood & Uwe Jirjahn, 2022. "Performance pay and alcohol use in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 353-383, October.
    3. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2023. "Does Performance Pay Increase the Risk of Marital Instability?," GLO Discussion Paper Series 1305, Global Labor Organization (GLO).
    4. Green, Colin P. & Heywood, John S., 2023. "Performance pay, work hours and employee health in the UK," Labour Economics, Elsevier, vol. 84(C).
    5. Green, Colin P. & Heywood, John S., 2022. "Does Performance Pay Influence Hours of Work?," IZA Discussion Papers 15474, Institute of Labor Economics (IZA).
    6. Uwe Jirjahn & Jens Mohrenweiser, 2019. "Performance Pay and Applicant Screening," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 540-575, September.
    7. Angelini, Viola & Costa-Font, Joan, 2023. "Health and wellbeing spillovers of a partner's cancer diagnosis," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 422-437.
    8. Benjamin Artz & Colin P. Green & John S. Heywood, 2021. "Does performance pay increase alcohol and drug use?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 969-1002, July.
    9. Nikolova, Milena & Popova, Olga & Otrachshenko, Vladimir, 2022. "Stalin and the origins of mistrust," Journal of Public Economics, Elsevier, vol. 208(C).
    10. Barry, L.E. & O'Neill, S. & Heaney, L.G. & O'Neill, C., 2021. "Stress-related health depreciation: Using allostatic load to predict self-rated health," Social Science & Medicine, Elsevier, vol. 283(C).
    11. Martina Celidoni & Vincenzo Rebba, 2017. "Healthier lifestyles after retirement in Europe? Evidence from SHARE," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(7), pages 805-830, September.
    12. Campos-Mercade, Pol & Meier, Armando N. & Schneider, Florian H. & Wengström, Erik, 2021. "Prosociality predicts health behaviors during the COVID-19 pandemic," Journal of Public Economics, Elsevier, vol. 195(C).
    13. Baktash, Mehrzad B., 2023. "Overeducation, Performance Pay and Wages: Evidence from Germany," GLO Discussion Paper Series 1327, Global Labor Organization (GLO).
    14. Zhang, Yi & Liu, Chun, 2021. "Religion and unproductive entrepreneurship: The role of risk aversion," European Journal of Political Economy, Elsevier, vol. 70(C).
    15. Karsten Albæk & Tine Jeppesen & Bjørn Christian Arleth Viinholt, 2022. "PROTOCOL: Performance pay and employee health: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 18(3), September.
    16. Andelic, Nicole & Allan, Julia & Bender, Keith A. & Powell, Daniel & Theodossiou, Ioannis, 2022. "Performance-Related Pay and Objective Measures of Health after Correcting for Sample Selection," IZA Discussion Papers 15000, Institute of Labor Economics (IZA).
    17. David M. Cutler & Adriana Lleras-Muney & Tom Vogl, 2008. "Socioeconomic Status and Health: Dimensions and Mechanisms," NBER Working Papers 14333, National Bureau of Economic Research, Inc.
    18. Eichengreen, Barry & Aksoy, Cevat Giray & Saka, Orkun, 2021. "Revenge of the experts: Will COVID-19 renew or diminish public trust in science?," Journal of Public Economics, Elsevier, vol. 193(C).
    19. Beckmann, Michael & Cornelissen, Thomas & Kräkel, Matthias, 2017. "Self-managed working time and employee effort: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 285-302.
    20. Martin Schlotter & Guido Schwerdt & Ludger Woessmann, 2011. "Econometric methods for causal evaluation of education policies and practices: a non-technical guide," Education Economics, Taylor & Francis Journals, vol. 19(2), pages 109-137.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:indres:v:63:y:2024:i:1:p:3-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0019-8676 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.