The price of stress

Abstract

In this paper an economic approach is taken to the analysis of work-related stress. This economic approach not only allows us to infer the monetary equivalent of stress, it also enables us to test some of the psychological theories on stress, such as the demand/control theory. Evidence is found that the allocation of male workers is based on comparative advantages, while the allocation of female workers is based on absolute advantages. For males, but not for females, it is found that if work with stress pays more relative to work without stress, workers are more likely to accept a job with stress. It is further found that job demands affect work-related stress more than aspects of job control. © 1999 Elsevier Science B.V. All rights reserved.