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Worker Absenteeism: Why Firm Size May Matter

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  • Tim Barmby
  • Gesine Stephen

Abstract

Absence rates are higher in large firms. This relationship between absence and firm size could possibly be explained if large firms had smaller unit cost of absence. We show, extending a method used by Weiss, that multiple‐line firms can be more efficient in insuring against absence through holding buffer‐stock workers than single‐line firms can. This suggests a theoretical underpinning of the observed relationship. An empirical investigation of the relationship between firm size and absence using German individual and firm data demonstrates the strength of the firm size effect on absence.

Suggested Citation

  • Tim Barmby & Gesine Stephen, 2000. "Worker Absenteeism: Why Firm Size May Matter," Manchester School, University of Manchester, vol. 68(5), pages 568-577, September.
    • Handle: RePEc:bla:manchs:v:68:y:2000:i:5:p:568-577
    DOI: 10.1111/1467-9957.00219
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    Cited by:

    1. Dizioli, Allan & Pinheiro, Roberto, 2016. "Health insurance as a productive factor," Labour Economics, Elsevier, vol. 40(C), pages 1-24.
    2. Sebastien Menard, 2021. "Optimal sickness benefits in a principal–agent model," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(1), pages 5-33, July.
    3. Joyce Burnette, 2021. "Missing work: absenteeism at Pepperell Manufacturing Co. in 1883," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(3), pages 755-786, September.
    4. Chris Dawson & Michail Veliziotis & Benjamin Hopkins, 2018. "Understanding the Perception of the ‘Migrant Work Ethic’," Work, Employment & Society, British Sociological Association, vol. 32(5), pages 811-830, October.
    5. Miriam Beblo & Renate Ortlieb, 2012. "Absent from Work? The Impact of Household and Work Conditions in Germany," Feminist Economics, Taylor & Francis Journals, vol. 18(1), pages 73-97, January.
    6. Bernd J. Frick & Ute Goetzen & Robert Simmons, 2013. "The Hidden Costs of High-Performance Work Practices: Evidence from a Large German Steel Company," ILR Review, Cornell University, ILR School, vol. 66(1), pages 198-224, January.
    7. Fiona Cocker & Angela Martin & Jenn Scott & Alison Venn & Kristy Sanderson, 2013. "Psychological Distress, Related Work Attendance, and Productivity Loss in Small-to-Medium Enterprise Owner/Managers," IJERPH, MDPI, vol. 10(10), pages 1-21, October.

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