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

Author

Listed:
  • Andelic, Nicole

    (University of Aberdeen)

  • Allan, Julia

    (University of Stirling)

  • Bender, Keith A.

    (University of Aberdeen)

  • Powell, Daniel

    (University of Aberdeen)

  • Theodossiou, Ioannis

    (University of Aberdeen)

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.

Suggested Citation

  • Andelic, Nicole & Allan, Julia & Bender, Keith A. & Powell, Daniel & Theodossiou, Ioannis, 2024. "Does How You Get Paid at Work Affect Your Time off Work? The Relationship between Performance-Related Employment Contracts and Leisure Activities," IZA Discussion Papers 16886, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16886
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    References listed on IDEAS

    as
    1. C. Bram Cadsby & Fei Song & Nick Zubanov, 2019. "The “Sales Agent” Problem: Effort/Leisure Allocation Under Performance Pay As Behavior Towards Risk," Economic Inquiry, Western Economic Association International, vol. 57(4), pages 1997-2016, October.
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    More about this item

    Keywords

    performance-related pay; leisure; sleep; health;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I0 - Health, Education, and Welfare - - General

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