Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave
AbstractUsing linked employer-employee data from the Canadian Workplace and Employee Survey 1999-2004, we provide new evidence on how the cost of absence affects labor supply decisions. We use a particular feature of the data by which total absences are divided into three separate categories: sick paid days, other paid days and unpaid days. This division introduces variations in the way workers are compensated for absence (the cost of absence) and allows us to estimate more precisely how variations in such costs affect absenteeism decisions. We find an absence elasticity of -0.37. We also find unobserved heterogeneity to play different roles for workers and workplaces: some workers are more frequently absent whatever the reason, but paid and unpaid leaves are negatively correlated at the workplace level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 0815.
Date of creation: 2008
Date of revision:
Absenteeism; Linked Employer-Employee Data; Unobserved Heterogeneity; Count Data Model; Correlated Random Effects;
Other versions of this item:
- Dionne, Georges & Dostie, Benoit, 2008. "Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave," IZA Discussion Papers 3642, Institute for the Study of Labor (IZA).
- Georges Dionne & Benoit Dostie, 2008. "Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave," Cahiers de recherche 08-07, HEC Montréal, Institut d'économie appliquée.
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-14 (All new papers)
- NEP-BEC-2008-08-14 (Business Economics)
- NEP-LAB-2008-08-14 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Drago & Mark Wooden, 1992. "The determinants of labor absence: Economic factors and workgroup norms across countries," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(4), pages 764-778, July.
- 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, vol. 61(1), pages 108-120, October.
- Georges Dionne & Benoit Dostie, 2005. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," Cahiers de recherche 0521, CIRPEE.
- Georges Dionne & Benoit Dostie, 2005. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," Cahiers de recherche 05-04, HEC Montréal, Institut d'économie appliquée.
- Steven G. Allen, 1983. "How Much Does Absenteeism Cost?," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 379-393.
- John S. Heywood & Uwe Jirjahn, 2004. "Teams, Teamwork and Absence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 765-782, December.
- Barmby, T A & Orme, C D & Treble, John G, 1991.
"Worker Absenteeism: An Analysis Using Microdata,"
Royal Economic Society, vol. 101(405), pages 214-29, March.
- DIONNE, George & EECKHOUDT, Louis, .
"Proportional risk aversion, taxation and labor supply under uncertainty,"
CORE Discussion Papers RP
-784, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Dionne, G. & Eeckhoudt, L., 1984. "Proportional Risk Aversion, Taxation and Labor Supply Under Uncertainty," Cahiers de recherche 8441, Universite de Montreal, Departement de sciences economiques.
- Johansson, Per & Palme, Mårten, 2001.
"Assessing the effect of public policy on worker absenteeism,"
Working Paper Series
2002:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Per Johansson & Mårten Palme, 2002. "Assessing the Effect of Public Policy on Worker Absenteeism," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 381-409.
- Gourieroux Christian & Monfort Alain & Trognon A, 1982.
"Pseudo maximum lilelihood methods : applications to poisson models,"
CEPREMAP Working Papers (Couverture Orange)
- Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models," Econometrica, Econometric Society, vol. 52(3), pages 701-20, May.
- Delgado, M.A. & Kniesner, T.J., 1994.
"Count Data Models with Viriance of Unknown Form - An Application to a Hedonic Model of Worker Absenteeism,"
94-011, Indiana - Center for Econometric Model Research.
- Miguel A. Delgado & Thomas J. Kniesner, 1997. "Count Data Models With Variance Of Unknown Form: An Application To A Hedonic Model Of Worker Absenteeism," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 41-49, February.
- Dunn, L F & Youngblood, Stuart A, 1986. "Absenteeism as a Mechanism for Approaching an Optimal Labor Market Equilibrium: An Empirical Study," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 668-74, November.
- Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
- Henrekson, Magnus & Persson, Mats, 2001.
"The Effects on Sick Leave of Changes in the Sickness Insurance System,"
697, Stockholm University, Institute for International Economic Studies.
- Magnus Henrekson & Mats Persson, 2004. "The Effects on Sick Leave of Changes in the Sickness Insurance System," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 87-114, January.
- Henrekson, Magnus & Persson, Mats, 2001. "The Effects on Sick Leave of Changes in the Sickness Insurance System," Working Paper Series in Economics and Finance 0444, Stockholm School of Economics, revised 08 Aug 2001.
- Andrea Ichino & Regina T. Riphahn, 2005. "The Effect of Employment Protection on Worker Effort: Absenteeism During and After Probation," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 120-143, 03.
- Andrea Ichino & Enrico Moretti, 2009.
"Biological Gender Differences, Absenteeism, and the Earnings Gap,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 1(1), pages 183-218, January.
- Andrea Ichino & Enrico Moretti, 2006. "Biological Gender Differences, Absenteeism and the Earning Gap," NBER Working Papers 12369, National Bureau of Economic Research, Inc.
- Ichino, Andrea & Moretti, Enrico, 2006. "Biological Gender Differences, Absenteeism and the Earning Gap," CEPR Discussion Papers 5785, C.E.P.R. Discussion Papers.
- Ichino, Andrea & Moretti, Enrico, 2006. "Biological Gender Differences, Absenteeism and the Earning Gap," IZA Discussion Papers 2207, Institute for the Study of Labor (IZA).
- Göran Kauermann & Renate Ortlieb, 2004. "Temporal pattern in number of staff on sick leave: the effect of downsizing," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 53(2), pages 355-367.
- Allen, Steven G, 1981. "An Empirical Model of Work Attendance," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 77-87, February.
- Eeckhoudt,L. & Gollier, C., 1997. "Changing in Risk and Risk Taking: A Survey," Papers 97.472, Toulouse - GREMAQ.
- Ose, Solveig Osborg, 2005. "Working conditions, compensation and absenteeism," Journal of Health Economics, Elsevier, vol. 24(1), pages 161-188, January.
- Barmby, Tim, 2002. "Worker absenteeism: a discrete hazard model with bivariate heterogeneity," Labour Economics, Elsevier, vol. 9(4), pages 469-476, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).
If references are entirely missing, you can add them using this form.