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...

A large body of research links performance pay to poorer worker health. The exact mechanism generating this link remains in doubt. We examine a common suspect, that performance pay causes employees to work longer hours in pursuit of higher pay. Using representative data for the UK, we...

A grouped hazard approach for analysing multiple-spell durations subject to censoring is applied to spells of absence from the workplace. We follow Barmby, Orme and Treble's (1991) procedure for dealing with unobserved heterogeneity, but argue that their treatment of the observed discrete data,...

We estimate the effect of variable pay schemes on workplace absenteeism using two cross sections of British establishments. Private sector establishments that explicitly link pay with individual performance are found to have significantly lower absence rates. This effect is stronger for...

Using German survey data, we show that performance pay is associated with a substantially lower gender hours gap. While performance pay increases the work hours of both men and women, the increase is much larger for women than for men. This finding persists in worker fixed effects estimates. We...