25 Downloads (Pure)

Abstract

Recent economics literature suggests a link between performance pay and ill health, potentially through the adverse effects of performance pay on stress. This project examines this issue using an experimental design that purges the effects of self-selection into performance pay and identifies the direction of causation from performance pay to stress. Results find that those who are paid for their performance experience higher levels of stress, both in terms of perceived stress and objectively measured cortisol levels, than those who are paid by a minimum performance contract.
Original languageEnglish
PublisherUniversity of Aberdeen Business School
Pages1-22
Number of pages22
Publication statusPublished - May 2017

Publication series

NameDiscussion Paper in Economics
PublisherUniversity of Aberdeen
No.5
Volume17
ISSN (Electronic)0143-4543

Keywords

  • performance-related pay
  • real-effort experiment
  • stress
  • cortisol

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Fingerprint Dive into the research topics of 'Performance Pay and Stress: An Experimental Study'. Together they form a unique fingerprint.

  • Cite this

    Allan, J., Bender, K. A., & Theodossiou, I. (2017). Performance Pay and Stress: An Experimental Study. (pp. 1-22). (Discussion Paper in Economics; Vol. 17, No. 5). University of Aberdeen Business School.