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Measuring the effects of work loss on productivity with team production

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Author Info

  • Sean Nicholson

    (Department of Policy Analysis and Management, Cornell University, USA)

  • Mark V. Pauly

    (Health Care Systems Department, The Wharton School, University of Pennsylvania, USA)

  • Daniel Polsky

    (General Internal Medicine, Department of Medicine, University of Pennsylvania, USA)

  • Claire Sharda

    (USHH Outcomes Research & Management, Merck & Co., Inc., USA)

  • Helena Szrek

    (Health Care Systems Department, The Wharton School, University of Pennsylvania, USA)

  • Marc L. Berger

    (USHH Outcomes Research & Management, Merck & Co., Inc., USA)

Abstract

Using data from a survey of 800 managers in 12 industries, we find empirical support for the hypothesis that the cost associated with missed work varies across jobs according to the ease with which a manager can find a perfect replacement for the absent worker, the extent to which the worker functions as part of a team, and the time sensitivity of the worker's output. We then estimate wage 'multipliers' for 35 different jobs, where the multiplier is defined as the cost to the firm of an absence as a proportion (often greater than one) of the absent worker's daily wage. The median multiplier is 1.28, which supports the view that the cost to the firm of missed work is often greater than the wage. Copyright © 2005 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1052
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 2 ()
Pages: 111-123

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Handle: RePEc:wly:hlthec:v:15:y:2006:i:2:p:111-123

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Mark V. Pauly & Sean Nicholson & Judy Xu & Dan Polsky & Patricia M. Danzon & James F. Murray & Marc L. Berger, 2002. "A general model of the impact of absenteeism on employers and employees," Health Economics, John Wiley & Sons, Ltd., vol. 11(3), pages 221-231.
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Cited by:
  1. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.
  2. Simon Wieser & Bruno Horisberger & Sara Schmidhauser & Claudia Eisenring & Urs Brügger & Andreas Ruckstuhl & Jürg Dietrich & Anne Mannion & Achim Elfering & Özgür Tamcan & Urs Müller, 2011. "Cost of low back pain in Switzerland in 2005," The European Journal of Health Economics, Springer, vol. 12(5), pages 455-467, October.
  3. Robert Dur & Amihai Glazer, 2004. "The Desire for Impact," Tinbergen Institute Discussion Papers 04-115/1, Tinbergen Institute, revised 19 Dec 2006.
  4. Uschi Backes-Gellner & Stephan Veen, 2008. "The Impact of Workforce Age Heterogeneity on Company Productivity," Working Papers 0078, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Sep 2009.
  5. Mark V. Pauly & Sean Nicholson & Daniel Polsky & Marc L. Berger & Claire Sharda, 2008. "Valuing reductions in on-the-job illness: 'presenteeism' from managerial and economic perspectives," Health Economics, John Wiley & Sons, Ltd., vol. 17(4), pages 469-485.
  6. Robert Dur & Amihai Glazer, 2004. "The Desire for Impact," Tinbergen Institute Discussion Papers 04-115/1, Tinbergen Institute, revised 19 Dec 2006.

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