IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp16886.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp16886.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    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. Thomas Dohmen & Ingrid M. T. Rohde & Tom Stolp, 2023. "Tournament incentives affect perceived stress and hormonal stress responses," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 955-985, September.
    2. 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.
    3. Adams, Scott J. & Heywood, John S. & Ullman, Darin F. & Venkatesh, Shrathinth, 2022. "Social jobs and the returns to drinking," Economics & Human Biology, Elsevier, vol. 46(C).
    4. Mehrzad B. Baktash, 2024. "Does Performance Pay Increase the Risk of Worker Loneliness?," Research Papers in Economics 2024-12, University of Trier, Department of Economics.
    5. 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.
    6. Marco Clemens, 2024. "Bonuses, Profit-sharing and Job Satisfaction: the More, the Better?," IAAEU Discussion Papers 202406, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    7. Green, Colin P. & Heywood, John S., 2022. "Does Performance Pay Influence Hours of Work?," IZA Discussion Papers 15474, Institute of Labor Economics (IZA).
    8. Green, Colin P. & Heywood, John S., 2023. "Performance pay, work hours and employee health in the UK," Labour Economics, Elsevier, vol. 84(C).
    9. 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.
    10. Jirjahn, Uwe & Rienzo, Cinzia, 2024. "Working from Home and Performance Pay: Individual or Collective Payment Schemes?," GLO Discussion Paper Series 1481, Global Labor Organization (GLO).
    11. Artz, Benjamin & Heywood, John S., 2025. "Does Performance Pay Deter Job Quits?," IZA Discussion Papers 17791, Institute of Labor Economics (IZA).
    12. 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).
    13. Butschek, Sebastian & González Amor, Roberto & Kampkötter, Patrick & Sliwka, Dirk, 2022. "Motivating gig workers – evidence from a field experiment," Labour Economics, Elsevier, vol. 75(C).
    14. Thomas Dohmen & Ingrid M. T. Rohde & Tom Stolp, 2023. "Correction to: Tournament incentives affect perceived stress and hormonal stress responses," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 986-987, September.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp16886. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.