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Does Physical Exercise Affect Tradeoffs between Fixed Pay and Performance-related Pay for Individuals?

Author

Listed:
  • Weiyi Zhang

    (Graduate School of Economics, Kobe University)

  • Hiromasa Takahashi

    (Faculty of International Studies, Hiroshima City University)

  • Junyi Shen

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

Much of the literature on performance-related pay has discussed the relationships with risk attitude, job satisfaction, sorting effects, amongst other factors. This paper focuses on the relationship between individual preferences for physical exercise or sports and the tradeoff between fixed and performance-related pay. First, a choice experiment is used to identify the individual preference for payments, and the tradeoff between fixed and performance-related pay. Next, OLS regression models are used to link the tradeoff with individual preference for physical exercise or sports. The results show that such a preference has a positive and significant influence on individuals' tradeoff of payments. For individuals who like physical exercise or sports more, who are better at them, and who take part in them more frequently, are more likely to prefer performance-related pay.

Suggested Citation

  • Weiyi Zhang & Hiromasa Takahashi & Junyi Shen, 2016. "Does Physical Exercise Affect Tradeoffs between Fixed Pay and Performance-related Pay for Individuals?," Discussion Paper Series DP2016-13, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2016-13
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2016-13.pdf
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    References listed on IDEAS

    as
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    7. Stefanec, Noah Patrick, 2010. "Incentive pay: Productivity, sorting, and adjacent rents," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 171-179, April.
    8. Di Mauro, Carmela & Musumeci, Rosy, 2011. "Linking risk aversion and type of employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 490-495.
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    Cited by:

    1. Mehrzad B. Baktash & John S. Heywood & Uwe Jirjahn, 2022. "Performance pay and alcohol use in Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 61(4), pages 353-383, October.
    2. Baktash, Mehrzad B. & Heywood, John S. & Jirjahn, Uwe, 2022. "Worker stress and performance pay: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 276-291.

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    More about this item

    Keywords

    Physical exercise; Sports; Fixed pay; Performance-related pay; Tradeoff;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • Z22 - Other Special Topics - - Sports Economics - - - Labor Issues

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