IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v53y1999i1p3-20.html
   My bibliography  Save this article

Employee Discharge and Reinstatement: Moral Hazards and the Mixed Consequences of Last Chance Agreements

Author

Listed:
  • Peter A. Bamberger
  • Linda H. Donahue

Abstract

The authors examine the consequences of workplace discipline practices involving the use of last chance agreements (LCAs)—contracts governing the non-arbitral reinstatement of discharged employees. Using data from one manufacturing firm's 15-year experience with LCAs, they explore the impact of LCA-based employee reinstatement on subsequent years' discharge rates. They also seek to identify individual and work-related factors predictive of individual reinstatement “success.†Consistent with moral hazard theory, the analysis shows evidence of a positive relationship between the number of LCAs signed in one year and the rate of discharge in subsequent years; and consistent with the theory of reintegrative shaming, LCAs appear to be most effective among those most susceptible to shaming.

Suggested Citation

  • Peter A. Bamberger & Linda H. Donahue, 1999. "Employee Discharge and Reinstatement: Moral Hazards and the Mixed Consequences of Last Chance Agreements," ILR Review, Cornell University, ILR School, vol. 53(1), pages 3-20, October.
    • Handle: RePEc:sae:ilrrev:v:53:y:1999:i:1:p:3-20
    DOI: 10.1177/001979399905300101
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979399905300101
    Download Restriction: no
    File URL: https://libkey.io/10.1177/001979399905300101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Donald R. Winkler, 1980. "The Effects of Sick-Leave Policy on Teacher Absenteeism," ILR Review, Cornell University, ILR School, vol. 33(2), pages 232-240, January.
    2. Thomas J. McDermott & Thomas H. Newhams, 1971. "Discharge-Reinstatement: What Happens Thereafter," ILR Review, Cornell University, ILR School, vol. 24(4), pages 526-540, July.
    3. Hartwell, T.D. & Steele, P. & French, M.T. & Potter, F.J. & Rodman, N.F. & Zarkin, G.A., 1996. "Aiding troubled employees: The prevalence, cost, and characteristics of employee assistance programs in the United States," American Journal of Public Health, American Public Health Association, vol. 86(6), pages 804-808.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph J. Sabia & Taylor Mackay & Thanh Tam Nguyen & Dhaval M. Dave, 2018. "Do Ban the Box Laws Increase Crime?," NBER Working Papers 24381, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Araújo, José & Pestana, Gabriel, 2017. "A framework for social well-being and skills management at the workplace," International Journal of Information Management, Elsevier, vol. 37(6), pages 718-725.
    2. Raegen T. MILLER & Richard J. MURNANE & John B. WILLETT, 2008. "Do worker absences affect productivity? The case of teachers," International Labour Review, International Labour Organization, vol. 147(1), pages 71-89, March.
    3. Melanie Millar & Roger M. White & Xin Zheng, 2023. "Substance Abuse and Workplace Fraud: Evidence from Physicians," Journal of Business Ethics, Springer, vol. 183(2), pages 585-602, March.
    4. Gazley, Aaron & Sinha, Ashish & Rod, Michel, 2016. "Toward a theory of marketing law transgressions," Journal of Business Research, Elsevier, vol. 69(2), pages 476-483.
    5. Raegen T. Miller & Richard J. Murnane & John B. Willett, 2007. "Do Teacher Absences Impact Student Achievement? Longitudinal Evidence from One Urban School District," NBER Working Papers 13356, National Bureau of Economic Research, Inc.
    6. French, Michael T. & Dunlap, Laura J. & Zarkin, Gary A. & Karuntzos, Georgia T., 1998. "The costs of an enhanced employee assistance program (EAP) intervention," Evaluation and Program Planning, Elsevier, vol. 21(2), pages 227-236, May.
    7. Mariesa A. Herrmann & Jonah E. Rockoff, 2012. "Worker Absence and Productivity: Evidence from Teaching," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 749-782.
    8. Simone T. A. Phipps & Leon C. Prieto, 2016. "A Discovery of Early Labor Organizations and the Women who Advocated Work–Life Balance: An Ethical Perspective," Journal of Business Ethics, Springer, vol. 134(2), pages 249-261, March.
    9. Sarah Brown & Fathi Fakhfakh & John G. Sessions, 1999. "Absenteeism and Employee Sharing: An Empirical Analysis Based on French Panel Data, 1981–1991," ILR Review, Cornell University, ILR School, vol. 52(2), pages 234-251, January.
    10. Jessica Primoff Vistnes, 1997. "Gender Differences in Days Lost from Work Due to Illness," ILR Review, Cornell University, ILR School, vol. 50(2), pages 304-323, January.
    11. Jerry Sun & Steven F. Cahan & Jing Xu, 2016. "Individual Auditor Conservatism After CSRC Sanctions," Journal of Business Ethics, Springer, vol. 136(1), pages 133-146, June.
    12. Michael T. French & Gary A. Zarkin & Laura J. Dunlap, 1998. "Illicit Drug Use, Absenteeism, And Earnings At Six U.S. Worksites," Contemporary Economic Policy, Western Economic Association International, vol. 16(3), pages 334-346, July.
    13. Fumio Ohtake, 2003. "Unions, the Costs of Job Loss, and Vacation," NBER Chapters, in: Labor Markets and Firm Benefit Policies in Japan and the United States, pages 371-390, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:53:y:1999:i:1:p:3-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.