Performance‐related pay, mental and physiological health

Much of the literature on performance-related pay (PRP) and poor health relies self-reported data, relationship is difficult to examine due confounding variables. We between PRP three groups measures using data from UKHLS: blood pressure, inflammation markers in blood, health. Regressions correcting for self-selection bias socio-demographic covariates find that contracts are associated with poorer mental health, higher systolic levels fibrinogen. These findings suggest firms use may need implement policies mitigate against PRP-related stress.