Allan, JL;
Andelic, N;
Bender, KA;
Powell, D;
Stoffel, S;
Theodossiou, I;
(2021)
Employment contracts and stress: Experimental evidence.
Journal of Economic Behavior and Organization
, 187
pp. 360-373.
10.1016/j.jebo.2021.04.015.
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Abstract
A growing literature has found a link between performance-related pay (PRP) and poor health, but the causal direction of the relationship is not known. To address this gap, the current paper utilises a crossover experimental design to randomly allocate subjects into a work task paid either by performance or a fixed payment. Stress is measured through self-reporting and salivary cortisol. The study finds that PRP subjects had significantly higher cortisol levels and self-rated stress than those receiving fixed pay, ceteris paribus. By circumventing issues of self-report and self-selection, these results provide novel evidence for the detrimental effect PRP may have on health.
| Type: | Article |
|---|---|
| Title: | Employment contracts and stress: Experimental evidence |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.jebo.2021.04.015 |
| Publisher version: | https://doi.org/10.1016/j.jebo.2021.04.015 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| Keywords: | Performance-related pay; Stress; Experiment; Cortisol |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Population Health Sciences > Institute of Epidemiology and Health UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences > Faculty of Population Health Sciences > Institute of Epidemiology and Health > Epidemiology and Public Health |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10133287 |
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