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Compensation, safety, and absenteeism: Evidence from the paper industry

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Author Info
Steven G. Allen
Abstract

This paper develops an economic model of absenteeism and tests that model with data from a sample of establishments in the paper industry. Absenteeism is viewed as a desirable nonpecuniary element of the compensation package. The model, which is based upon the hedonic framework developed by Sherwin Rosen, focuses on the effects of wages, fringe benefits, and employment hazards on the long-run equilibrium absence rate of an establishment. The author finds that absence rates are significantly higher in paper plants with low wages and high occupational illness and injury rates, as predicted by the model. The impact of fringe benefits is less clear-cut both theoretically and empirically. The results suggest that work attendance plays an important part in labor market adjustment; studies that focus only on wage differences will underestimate the compensating differential for employment hazards, which includes increased absence rates as well as higher wages. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 34 (1981)
Issue (Month): 2 (January)
Pages: 207-218
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Handle: RePEc:ilr:articl:v:34:y:1981:i:2:p:207-218

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  1. Steven G. Allen & Robert L. Clark, 1987. "Pensions and Firm Performance," NBER Working Papers 2266, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Matthias Weiss, 2008. "Sick Leave and the Composition of Work Teams," MEA discussion paper series 07149, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  3. Fumio Ohtake, 2003. "Unions, the Costs of Job Loss, and Vacation," NBER Chapters, in: Labor Markets and Firm Benefit Policies in Japan and the United States, pages 371-390 National Bureau of Economic Research, Inc. [Downloadable!]
  4. William N. Evans & Matthew C. Farrelly & Edward Montgomery, 1996. "Do Workplace Smoking Bans Reduce Smoking?," NBER Working Papers 5567, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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