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Author: Green, Colin P.
Resulting in 1 citation.
1. Artz, Benjamin
Green, Colin P.
Heywood, John S.
Does Performance Pay Increase Alcohol and Drug Use?
Journal of Population Economics 34 (2021): 969-1002.
Cohort(s): NLSY97
Publisher: Springer
Keyword(s): Alcohol Use; Drug Use; Modeling, Fixed Effects; Performance pay

Permission to reprint the abstract has not been received from the publisher.

Using US panel data on young workers, we demonstrate that those who receive performance pay are more likely to consume alcohol and illicit drugs. Recognizing that this likely reflects worker sorting, we first control for risk, ability, and personality proxies. We further mitigate sorting concerns by introducing worker fixed effects, worker-employer match fixed effects, and worker-employer-occupation match fixed effects. Finally, we present fixed effect IV estimates. All of these estimates continue to indicate a greater likelihood of substance use when a worker receives performance pay. The results support conjectures that stress and effort increase with performance pay and that alcohol and drug use is a coping mechanism for workers.
Bibliography Citation
Artz, Benjamin, Colin P. Green and John S. Heywood. "Does Performance Pay Increase Alcohol and Drug Use?" Journal of Population Economics 34 (2021): 969-1002.