The unintended consequences of the rat race: the detrimental effects of performance pay on health

C-Tier
Journal: Oxford Economic Papers
Year: 2014
Volume: 66
Issue: 3
Pages: 824-847

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Although performance pay schemes have been linked to labour market productivity, one unintended consequence, suggested early by Adam Smith, is that performance pay is detrimental to health. Recent research has shown that there is a positive relationship between performance pay and injuries on the job. This article focusses on the consequences of performance pay on health and investigates if there is a link between performance pay and self-reported general health or specific illnesses. Using data from the British Household Panel Survey, this study uses survival analysis to show that being in jobs with a performance pay element increases the likelihood of health deterioration, ceteris paribus.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:66:y:2014:i:3:p:824-847.
Journal Field
General
Author Count
2
Added to Database
2026-01-24