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The value of rude health: employees' well being, absence and workplace performance

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  • Marsden, David
  • Moriconi, Simone

Abstract

This paper brings new evidence on the relationship between employees' well being, sickness absence and four dimensions of workplace performance i.e. productivity, efficiency, quality of service and profitability. It uses a new panel dataset with monthly observations over two years for 48 local units of a large multi-site organisation in the logistics sector. It finds that good consultation and communication at the local level are associated with lower absenteeism. It also finds that lower absence is associated with higher efficiency, productivity, quality of the service and profitability of the firm. Finally, the authors suggest that the link between workers’ absence and this firm’s profitability runs through the increased use of replacement labour which raises short-run costs and reduces quality of service.

Suggested Citation

  • Marsden, David & Moriconi, Simone, 2009. "The value of rude health: employees' well being, absence and workplace performance," LSE Research Online Documents on Economics 51587, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:51587
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    File URL: http://eprints.lse.ac.uk/51587/
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    References listed on IDEAS

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    1. Barmby, T A & Orme, C D & Treble, John G, 1991. "Worker Absenteeism: An Analysis Using Microdata," Economic Journal, Royal Economic Society, vol. 101(405), pages 214-229, March.
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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