We investigate the impact of Mg-doping on the performance and degradation kinetics of AlGaN-based UV-C light-emitting diodes (LEDs). By comparing LEDs from three wafers with different nominal doping levels [Mg/(Al+Ga) ratio: 0.15%, 0.5%, and 1% in the gas phase during epitaxy] in the AlGaN:Mg electron-blocking layer (EBL), we demonstrate the following results: (i) A higher Mg-doping in the EBL results in a higher optical power at low current levels, which is ascribed to an increased hole injection efficiency. (ii) The reduction of the optical power follows a non-exponential trend, which can be reproduced by using the Hill's formula and is ascribed to the generation/activation of defects within the quantum wells. (iii) A higher Mg-doping in the EBL mitigates the degradation rate. An interpretation of the experimental data is proposed, assuming that hydrogen, which is present in and moving from the EBL, can reduce the rate of de-hydrogenation of point defects in the active region, which is responsible for degradation.