Performance-related pay and sorting into stress

C-Tier
Journal: Oxford Economic Papers
Year: 2025
Volume: 77
Issue: 4
Pages: 938-953

Authors (5)

Nicole Andelic (not in RePEc) Julia Allan (not in RePEc) Keith A Bender (University of Aberdeen) Daniel Powell (not in RePEc) Ioannis Theodossiou (not in RePEc)

Score contribution per author:

0.201 = (α=2.01 / 5 authors) × 0.5x C-tier

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

Abstract

To date, the literature on the performance-related pay (PRP) and health relationship has focused on self-reported data. This article uses an experimental method to examine the effect of PRP on stress measured by salivary cortisol for those who self-selected into a PRP contract, focusing on whether participants who perceive themselves with higher ability self-select into PRP and exhibit different stress changes compared to those not in a PRP scheme. Results show that self-selected PRP participants demonstrate significantly higher cortisol levels than participants in the non-PRP group. This study suggests that, regardless of sorting, PRP leads to higher physiological stress.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:77:y:2025:i:4:p:938-953.
Journal Field
General
Author Count
5
Added to Database
2026-01-24