Work

Performance-related pay and sorting into stress

Year: 2025

Type: article

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.

Source: Oxford Economic Papers

DOI: 10.1093/oep/gpaf008

Authors: Nicole Andelic, Julia Allan, Keith A Bender, Daniel Powell, Ioannis Theodossiou

Institutions: University of Aberdeen, University of Stirling

Language: English

Topic: Workplace Health and Well-being

Subfield: General Health Professions

Field: Health Professions

Domain: Health Sciences

SDGs: Good health and well-being, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $5,359