Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263628 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15412
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine the hypothesis that performance pay increases work hours. If performance pay incentivizes greater hours, this could cause the demonstrated link between performance pay and poorer worker health. Using US survey data, we confirm greater work hours and an increased likelihood of long working hours for performance pay workers. This remains in worker fixed effect estimates and in worker with employer fixed effect estimates. The magnitudes remain sufficiently large to support the potential role of long hours as an intermediary between performance pay and reduced worker health. Despite managers being the most likely to both receive performance pay and work long hours, we show this association largely reflects sorting and not the behavioral response evident for other workers.
Subjects: 
performance related pay
hours worked
JEL: 
J22
J33
Document Type: 
Working Paper

Files in This Item:
File
Size
513.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.