Performance-related pay and sorting into stress
Performance-related pay and sorting into stress
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.
938-953
Andelic, Nicole
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Allan, Julia
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Bender, Keith A.
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Powell, Daniel
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Theodossiou, Ioannis
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1 October 2025
Andelic, Nicole
271abdfa-45f1-4377-815d-7842b04d8d4c
Allan, Julia
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Bender, Keith A.
bf2fe2c8-132e-48dc-90e6-804a5650cc44
Powell, Daniel
e1e53a46-a37b-425b-ac15-e82f99033f46
Theodossiou, Ioannis
350adfea-5311-4f53-842a-e7bf0823f479
Andelic, Nicole, Allan, Julia, Bender, Keith A., Powell, Daniel and Theodossiou, Ioannis
(2025)
Performance-related pay and sorting into stress.
Oxford Economic Papers, 77 (4), .
(doi:10.1093/oep/gpaf008).
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.
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gpaf008
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e-pub ahead of print date: 23 March 2025
Published date: 1 October 2025
Identifiers
Local EPrints ID: 511453
URI: http://eprints.soton.ac.uk/id/eprint/511453
ISSN: 0030-7653
PURE UUID: d61bc2cc-87b9-43e4-8c14-cbbb8e9be420
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Date deposited: 15 May 2026 16:32
Last modified: 16 May 2026 02:23
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Contributors
Author:
Nicole Andelic
Author:
Julia Allan
Author:
Keith A. Bender
Author:
Daniel Powell
Author:
Ioannis Theodossiou
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