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Measuring workers' health and psychosocial work-environment on firm productivity

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  • Ödegaard, Fredrik

    ()
    (Ivey School of Business, Western University)

  • Roos, Pontus

    (R.R. Institute of Applied Economics)

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    Abstract

    We discuss a model for analyzing and measuring workers' health and psychosocial work-environment on firm productivity. Productivity is measured through the Malmquist productivity index approach using Data Envelopment Analysis. A novel component of the model is that in addition to standard quantity (or tradable) vairables, we incorporate quality (or non-tradable) variables. Specifically we focus on two quality input variables: workers' health status and psychosocial work-environment. The two variables are modeled as latent or unobserved variables using Item Response Theory. Changes over time in productivity are decomposed to asses the contribution from the changes of the input quality variables. The model is illustrated using data from a worksite health promotion program conducted at three large Swedish manufacturing plants (2 paper mills, 1 steel factory) from 2000 to 2003. Over the four years we observe a general improvement in efficiency of 2-5 %, out of which half can be attributed to the improvement in the quality input variables.

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    Bibliographic Info

    Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2012:17.

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    Length: 41 pages
    Date of creation: 04 Oct 2012
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2012_017

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    Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
    Phone: (+46) 18 - 471 70 70
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    Related research

    Keywords: Productivity; Decomposition of efficiency; Human resource management; Health status; Psychosocial work-environment; Ordinal data; Latent variables;

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    1. Fare, Rolf & Grosskopf, Shawna & Kokkelenberg, Edward C, 1989. "Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 655-66, August.
    2. Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
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