In Italy employees are fully insured against earning losses due to illness. Since worker’s health is not easily verifiable, absenteeism due to illness is considered an empirical proxy for employee shirking. The Bank of Italy Household Survey (SHIW) provides individual data on days of absence. Controlling for personal characteristics and potential determinants of health status and family responsibilities (age, gender, education, marital status, children at home) we show that the nature of employment contracts affects workers’ incentives to provide effort: sickness absences, at least partially, hide opportunistic behaviours. The type of occupation and the labour contracts affects workers’ behaviour in that more protected and difficult to monitor jobs show significantly higher levels of absenteeism: employees in public sector or in large firms, with permanent contracts or with longer tenure, individuals living in regions with low unemployment rates.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
16858.
Find related papers by JEL classification: J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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