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Valuing reductions in on-the-job illness: 'presenteeism' from managerial and economic perspectives

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Author Info

  • Mark V. Pauly

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

  • Sean Nicholson

    (Department of Policy Analysis & Management, Cornell University, Ithaca, NY, USA)

  • Daniel Polsky

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

  • Marc L. Berger

    (Global Health Outcomes, Eli Lilly and Company, Indianapolis, IN, USA)

  • Claire Sharda

    (Integrated Health Management, Merck & Co., Inc., West Point, PA, USA)

Abstract

This paper reports on a study of manager perceptions of the cost to employers of on-the-job employee illness, sometimes termed 'presenteeism,' for various types of jobs. Using methods developed previously, the authors analyzed data from a survey of more than 800 US managers to determine the characteristics of various jobs and the relationship of those characteristics to the manager's view of the cost to the firm of absenteeism and presenteeism. Jobs with characteristics that suggest unusually high cost (relative to wages) were similar in terms of their 'absenteeism multipliers' and their 'presenteeism multipliers.' Jobs with high values of team production, high requirements for timely output, and high difficulties of substitution for absent or impaired workers had significantly higher indicators of cost for both absenteeism and presenteeism, although substitution was somewhat less important for presenteeism. Copyright © 2007 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1266
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Bibliographic Info

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

Volume (Year): 17 (2008)
Issue (Month): 4 ()
Pages: 469-485

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Handle: RePEc:wly:hlthec:v:17:y:2008:i:4:p:469-485

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

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  1. Sean Nicholson & Marc V. Pauly & Daniel Polsky & Claire Sharda & Helena Szrek, 2004. "Measuring the Effects of Workloss on Productivity With Team Production," NBER Working Papers 10632, National Bureau of Economic Research, Inc.
  2. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. 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.
  4. Robert Sandy & Robert F. Elliott, 2005. "Long-term Illness and Wages: The Impact of the Risk of Occupationally Related Long-term Illness on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
  5. Monojit Chatterji & Colin J. Tilley, 2002. "Sickness, absenteeism, presenteeism, and sick pay," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 669-687, October.
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Cited by:
  1. Juan Oliva-Moreno, 2012. "Loss of labour productivity caused by disease and health problems: what is the magnitude of its effect on Spain’s Economy?," The European Journal of Health Economics, Springer, vol. 13(5), pages 605-614, October.
  2. 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.
  3. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," NBER Working Papers 18935, National Bureau of Economic Research, Inc.
  4. Jahangir Khan & Clas Rehnberg, 2009. "Perceived job security and sickness absence: a study on moral hazard," The European Journal of Health Economics, Springer, vol. 10(4), pages 421-428, October.
  5. Adam Raymakers & Mohsen Sadatsafavi & Fawziah Marra & Carlo Marra, 2012. "Economic and Humanistic Burden of External Genital Warts," PharmacoEconomics, Springer, vol. 30(1), pages 1-16, January.

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