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How Much Does Absenteeism Cost?

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  • Steven G. Allen
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    Abstract

    This paper presents evidence on the output loss resulting from absenteeism. Hedonic wage equations are estimated over two different data sets-the 1972-1973 Quality of Employment Survey and the pooled May 1973-1975 Current Population Survey-to calculate the cost in terms of reduced output and increased labor costs per payroll hour. Also, a manufacturing production function is estimated to directly compute the productivity loss. The results indicate that the effect of absenteeism on output is quite small: a 10 percentage point increase in the absence rate is associated with at most a 2.1 percent decrease in the wage.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 18 (1983)
    Issue (Month): 3 ()
    Pages: 379-393

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    Handle: RePEc:uwp:jhriss:v:18:y:1983:i:3:p:379-393

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. David Marsden & Simone Moriconi, 2009. "The value of rude health: employees' well being, absence and workplace performance," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 51587, London School of Economics and Political Science, LSE Library.
    2. Georges Dionne & Benoit Dostie, 2007. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, ILR Review, Cornell University, ILR School, vol. 61(1), pages 108-120, October.
    3. Pfeifer, Christian & Sohr, Tatjana, 2008. "Analysing the Gender Wage Gap Using Personnel Records of a Large German Company," IZA Discussion Papers 3533, Institute for the Study of Labor (IZA).
    4. Georges Dionne & Benoit Dostie, 2008. "Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave," Cahiers de recherche, CIRPEE 0815, CIRPEE.
    5. Ronald G. Ehrenberg & Randy A. Ehrenberg & Daniel I. Rees & REric L. Ehrenberg, 1991. "School District Leave Policies, Teacher Absenteeism, and Student Achievement," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 26(1), pages 72-105.
    6. Thalmaier, Anja, 1999. "Bestimmungsgründe von Fehlzeiten: Welche Rolle spielt die Arbeitslosigkeit?," IZA Discussion Papers 62, Institute for the Study of Labor (IZA).
    7. Mohamed Ali Ben Halima & Thierry Debrand, 2011. "Durée d’arrêt de travail, salaire et Assurance maladie : application microéconométrique à partir de la base Hygie," Working Papers, IRDES institut for research and information in health economics DT42, IRDES institut for research and information in health economics, revised Sep 2011.
    8. Regt,Erik R.,de, 2005. "Overtime and Short-time with Fluctuating Absenteeism and Demand," Research Memorandum, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) 026, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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