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  1. Tournament incentives affect perceived stress and hormonal stress responses
    Author: Dohmen, Thomas; Rohde, Ingrid; Stolp, Tom
    Published: March 2023
    Publisher:  ECONtribute, Bonn

    We conduct a laboratory experiment among male participants to investigate whether rewarding schemes that depend on work performance - in particular, tournament incentives - induce more stress than schemes that are independent of performance - fixed... more

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    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 711
    Inter-library loan:
    No inter-library loan

     

    We conduct a laboratory experiment among male participants to investigate whether rewarding schemes that depend on work performance - in particular, tournament incentives - induce more stress than schemes that are independent of performance - fixed payment scheme. Stress is measured over the entire course of the experiment at both the hormonal and psychological level. Hormonal stress responses are captured by measuring salivary cortisol levels. Psychological stress responses are measured by selfreported feelings of stress and primary appraisals. We find that tournament incentives induce a stress response whereas a fixed payment does not induce stress. This stress response does not differ significantly across situations in which winners and losers of the tournament are publically announced and situations in which this information remains private. Biological and psychological stress measures are positively correlated, i.e. increased levels of cortisol are associated with stronger feelings of stress. Nevertheless, neither perceived psychological stress nor elevated cortisol levels in a previous tournament predict a subsequent choice between tournaments and fixed payment schemes, indicating that stress induced by incentives schemes is not a relevant criterion for sorting decisions in our experiment. Finally, we find that cortisol levels are severely elevated at the beginning of the experiment, suggesting that participants experience stress in anticipation of the experiment per se, potentially due to uncertainties associated with the unknown lab situation. We call this the novelty effect.

     
    Export to reference management software   RIS file
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/278401
    Series: ECONtribute discussion paper ; no. 225
    Subjects: Incentive; stress; cortisol; sorting; laboratory experiment
    Scope: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  2. Tournament incentives affect perceived stress and hormonal stress responses
    Author: Dohmen, Thomas; Rohde, Ingrid; Stolp, Tom
    Published: March 2023
    Publisher:  IZA - Institute of Labor Economics, Bonn, Germany

    We conduct a laboratory experiment among male participants to investigate whether rewarding schemes that depend on work performance - in particular, tournament incentives - induce more stress than schemes that are independent of performance - fixed... more

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 4
    Inter-library loan:
    No inter-library loan

     

    We conduct a laboratory experiment among male participants to investigate whether rewarding schemes that depend on work performance - in particular, tournament incentives - induce more stress than schemes that are independent of performance - fixed payment scheme. Stress is measured over the entire course of the experiment at both the hormonal and psychological level. Hormonal stress responses are captured by measuring salivary cortisol levels. Psychological stress responses are measured by self-reported feelings of stress and primary appraisals. We find that tournament incentives induce a stress response whereas a fixed payment does not induce stress. This stress response does not differ significantly across situations in which winners and losers of the tournament are publically announced and situations in which this information remains private. Biological and psychological stress measures are positively correlated, i.e. increased levels of cortisol are associated with stronger feelings of stress. Nevertheless, neither perceived psychological stress nor elevated cortisol levels in a previous tournament predict a subsequent choice between tournaments and fixed payment schemes, indicating that stress induced by incentives schemes is not a relevant criterion for sorting decisions in our experiment. Finally, we find that cortisol levels are severely elevated at the beginning of the experiment, suggesting that participants experience stress in anticipation of the experiment per se, potentially due to uncertainties associated with the unknown lab situation. We call this the novelty effect.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/272652
    Series: Discussion paper series / IZA ; no. 16025
    Subjects: incentives; stress; cortisol; sorting; laboratory experiment
    Scope: 1 Online-Ressource (circa 45 Seiten), Illustrationen
  3. Employment contracts and stress
    experimental evidence
    Author: Allan, Julia L.; Andelic, Nicole; Bender, Keith A.; Powell, Daniel; Stoffel, Sandro Tiziano; Theodossiou, Ioannis
    Published: 2021
    Publisher:  Global Labor Organization (GLO), Essen

    A growing literature has found a link between performance-related pay (PRP) and poor health, but the causal direction of the relationship is not known. To address this gap, the current paper utilises a crossover experimental design to randomly... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 565
    Inter-library loan:
    No inter-library loan

     

    A growing literature has found a link between performance-related pay (PRP) and poor health, but the causal direction of the relationship is not known. To address this gap, the current paper utilises a crossover experimental design to randomly allocate subjects into a work task paid either by performance or a fixed payment. Stress is measured through self-reporting and salivary cortisol. The study finds that PRP subjects had significantly higher cortisol levels and self-rated stress than those receiving fixed pay, ceteris paribus. By circumventing issues of self-report and self-selection, these results provide novel evidence for the detrimental effect PRP may have on health.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/233876
    Series: GLO discussion paper ; no. 838
    Subjects: performance-related pay; stress; experiment; cortisol
    Scope: 1 Online-Ressource (circa 26 Seiten), Illustrationen