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Absence From Work, Sick Pay and Positional Consumption Concerns

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  • Laszlo Goerke

Abstract

We analyse labour supply and absence from work choices, assuming that individual preferences exhibit relative consumption concerns. We show that contractual hours and the length of absence periods may vary equally with the strength of positional considerations. In this case, positional concerns do not affect their difference, i.e. overall or effective working time. Moreover, the nature and intensity of relative consumption effects influence the impact of sick pay and of true illness periods on contractual work hours and absence behaviour. Consequently, the profitability of employing individuals also varies with the strength of their positional concerns.

Suggested Citation

  • Laszlo Goerke, 2019. "Absence From Work, Sick Pay and Positional Consumption Concerns," LABOUR, CEIS, vol. 33(2), pages 187-211, June.
    • Handle: RePEc:bla:labour:v:33:y:2019:i:2:p:187-211
    DOI: 10.1111/labr.12144
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    Cited by:

    1. Laszlo Goerke, 2020. "Horizontal FDI in a Dynamic Cournot - Oligopoly with Endogenous Entry," IAAEU Discussion Papers 202003, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    2. Laszlo Goerke & Michael Neugart, 2020. "Thorstein Veblen, Joan Robinson, and George Stigler (probably) never met: Social Preferences, Monopsony, and Government Intervention," IAAEU Discussion Papers 202001, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

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