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Measuring the Effects of Workloss on Productivity With Team Production

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Author Info
Sean Nicholson
Marc V. Pauly
Daniel Polsky
Claire Sharda
Helena Szrek

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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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10632.

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Date of creation: Jul 2004
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Handle: RePEc:nbr:nberwo:10632

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Find related papers by JEL classification:
I10 - Health, Education, and Welfare - - Health - - - General
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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References listed on IDEAS
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.:
  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. [Downloadable!]
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  1. 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. [Downloadable!]
  2. 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. [Downloadable!]
  3. Robert A. J. Dur & Amihai Glazer, 2005. "The Desire for Impact," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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