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Pay, Technology, And The Cost Of Worker Absence

Author

Listed:
  • MELVYN COLES
  • JOSEPH LANFRANCHI
  • ALI SKALLI
  • JOHN TREBLE

Abstract

"Conventional studies of absenteeism concentrate on labor supply. An equilibrium approach, however, establishes that the shadow cost of absenteeism varies across firms that operate different technologies. Using an unusual employee/employer matched data set from France, which records both individual worker absenteeism and information about technology, we show that firms operating just-in-time technology have higher shadow costs of absence than firms that do not. The estimates are used to calculate the economy-wide cost of absence, which turns out to be very low." ("JEL" J22, J31, J41) Copyright 2006 Western Economic Association International.

Suggested Citation

  • Melvyn Coles & Joseph Lanfranchi & Ali Skalli & John Treble, 2007. "Pay, Technology, And The Cost Of Worker Absence," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 268-285, April.
  • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:2:p:268-285
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    References listed on IDEAS

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    1. Brown, Sarah & Sessions, John G, 1996. " The Economics of Absence: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 10(1), pages 23-53, March.
    2. Donna B. Gilleskie, 1998. "A Dynamic Stochastic Model of Medical Care Use and Work Absence," Econometrica, Econometric Society, vol. 66(1), pages 1-46, January.
    3. 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.
    4. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
    5. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
    6. 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.
    7. Barmby, Tim & Orme, Chris & Treble, John, 1995. "Worker absence histories: a panel data study," Labour Economics, Elsevier, vol. 2(1), pages 53-65, March.
    8. Coles, Melvyn G. & Treble, John G., 1993. "The price of worker reliability," Economics Letters, Elsevier, vol. 41(2), pages 149-155.
    9. Tim Barmby & Suzyrman Sibly, 2004. "Analysing absence behaviour using event history models," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 141-145.
    10. 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.
    11. John S. Heywood & Uwe Jirjahn, 2004. "Teams, Teamwork and Absence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 765-782, December.
    12. Weiss, Andrew, 1985. "Absenteeism and wages," Economics Letters, Elsevier, vol. 19(3), pages 277-279.
    13. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
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    Cited by:

    1. repec:eme:rleczz:s0147-9121(2013)0000038005 is not listed on IDEAS
    2. Heywood, John S. & Jirjahn, Uwe & Wei, Xiangdong, 2008. "Teamwork, monitoring and absence," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 676-690, December.
    3. David Marsden, 2010. "Individual Voice in Employment Relationships: A Comparison Under Different Collective Voice Regimes," CEP Discussion Papers dp1006, Centre for Economic Performance, LSE.
    4. Gregor Bouville & David Alis, 2014. "The effects of lean organizational practices on employees' attitudes and workers' health: evidence from France," Post-Print halshs-01104687, HAL.
    5. David Marsden, 2010. "The End of National Models in Employment Relations?," CEP Discussion Papers dp0998, Centre for Economic Performance, LSE.
    6. Böckerman, Petri & Bryson, Alex & Ilmakunnas, Pekka, 2012. "Does high involvement management improve worker wellbeing?," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 660-680.
    7. Konstantinos, Pouliakas & Ioannis, Theodossiou, 2010. "An Inquiry Into the Theory, Causes and Consequences of Monitoring Indicators of Health and Safety At Work," MPRA Paper 20336, University Library of Munich, Germany.
    8. Konstantinos Pouliakas & Nikolaos Theodoropoulos, 2012. "The Effect of Variable Pay Schemes on Workplace Absenteeism," Research in Labor Economics,in: Research in Labor Economics, volume 36, pages 109-157 Emerald Publishing Ltd.
    9. 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.
    10. Joseph Lanfranchi & John Treble, 2010. "Just-In-Time Production, Work Organization And Absence Control," Manchester School, University of Manchester, vol. 78(5), pages 460-483, September.
    11. Ken Clark & Simon A. Peters & Mark Tomlinson, 2005. "The Determinants Of Lateness: Evidence From British Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(2), pages 282-304, May.
    12. John S. Heywood & Laurie A. Miller, 2015. "Schedule Flexibility, Family Friendly Policies and Absence," Manchester School, University of Manchester, vol. 83(6), pages 652-675, December.
    13. Wei Zhang & Huiying Sun & Simon Woodcock & Aslam H. Anis, 2017. "Valuing productivity loss due to absenteeism: firm-level evidence from a Canadian linked employer-employee survey," Health Economics Review, Springer, vol. 7(1), pages 1-14, December.
    14. Pouliakas, Konstantinos & Theodoropoulos, Nikolaos, 2009. "Performance Pay as an Incentive for Lower Absence Rates in Britain," MPRA Paper 18238, University Library of Munich, Germany.
    15. repec:dau:papers:123456789/14113 is not listed on IDEAS
    16. D.S. Possenriede & W.H.J. Hassink & J. Plantenga, 2014. "Does temporal and locational flexibility of work reduce absenteeism?," Working Papers 14-09, Utrecht School of Economics.
    17. Nikolaos Georgantzis & Efi Vasileiou, 2014. "Are Dangerous Jobs Paid Better? European Evidence," Research in Labor Economics,in: New Analyses of Worker Well-Being, volume 38, pages 163-192 Emerald Publishing Ltd.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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