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Performance pay and work hours: US survey evidence

Author

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  • Benjamin Artz
  • John S Heywood

Abstract

Using US survey data, we show that those on performance pay work substantially longer hours. This remains in worker fixed-effect estimates and in worker with employer fixed-effect estimates. The magnitudes confirm increased hours as a dimension of the anticipated effort response and long hours as a potential intermediary between performance pay and reduced worker health. Despite managers being the most likely to both receive performance pay and work long hours, this association largely reflects sorting and not the behavioral response evident for other workers.

Suggested Citation

  • Benjamin Artz & John S Heywood, 2024. "Performance pay and work hours: US survey evidence," Oxford Economic Papers, Oxford University Press, vol. 76(3), pages 609-627.
    • Handle: RePEc:oup:oxecpp:v:76:y:2024:i:3:p:609-627.
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    File URL: http://hdl.handle.net/10.1093/oep/gpad032
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    Citations

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    Cited by:

    1. Mehrzad B. Baktash & John S. Heywood & Uwe Jirjahn, 2025. "Performance Pay and Happiness: Work vs. Home?," Research Papers in Economics 2025-08, University of Trier, Department of Economics.
    2. Baktash, Mehrzad B., 2024. "Does Performance Pay Increase the Risk of Worker Loneliness?," GLO Discussion Paper Series 1524, Global Labor Organization (GLO).
    3. Mehrzad B. Baktash & John S. Heywood & Uwe Jirjahn, 2023. "Does Performance Pay Increase the Risk of Marital Instability?," Research Papers in Economics 2023-06, University of Trier, Department of Economics.
    4. Clemens, Marco & Sauermann, Jan, 2025. "Making the right call: The heterogeneous effects of individual performance pay on productivity," Labour Economics, Elsevier, vol. 94(C).
    5. Jirjahn, Uwe & Rienzo, Cinzia, 2025. "Working from Home and Mental Health: Giving Employees a Choice Does Make a Difference," IZA Discussion Papers 18187, Institute of Labor Economics (IZA).
    6. Green, Colin P. & Heywood, John S., 2023. "Performance pay, work hours and employee health in the UK," Labour Economics, Elsevier, vol. 84(C).
    7. Heywood, John S. & Nießen, Anna, 2025. "Performance Appraisal and Quits: Does Performance Pay Add Anything?," GLO Discussion Paper Series 1687, Global Labor Organization (GLO).

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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