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IZA Discussion Paper No. 16886
March 2024
Does How You Get Paid at Work Affect Your Time off Work? The Relationship between Performance-Related Employment Contracts and Leisure Activities
Nicole Andelic, Julia Allan, Keith A. Bender, Daniel Powell, Ioannis Theodossiou

Recent research highlights the association of performance-related pay (PRP) and poor health. An uninvestigated potential mechanism is a lower frequency of leisure activities, since PRP incentives longer work hours. This study investigates PRP's effect on a variety of leisure pursuits. After correcting for self-selection, UK data show that PRP workers are less likely to engage in some forms of exercise and spend less time sleeping compared to non PRP workers. In addition, they are more likely to eat out and consume alcohol. Such leisure differences between PRP and salaried workers may negatively affect the health and wellbeing of PRP workers.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

About IZA@LISER Network
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