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A Time Series Analysis of Labour Absence in Australia


  • Kenyon, Peter
  • Dawkins, Peter


The authors find evidence from Australian time-series data supporting two hypotheses about the determination of labor absence. First, labor absence modeled in a utility-maximizing framework that stresses the opportunity cost of labor absence receives considerable support from the data. Variables that change the slope and/or shift the budget constraint facing workers affect labor absence. Secondly, the authors find tentative evidence that coercive or difficult work environments, which apparently affect job satisfaction, adversely affect labor absence. In particular, it appears that labor absence is a leading indicator of a deteriorating industrial relations environment characterized by increased industrial disputation. Copyright 1989 by MIT Press.

Suggested Citation

  • Kenyon, Peter & Dawkins, Peter, 1989. "A Time Series Analysis of Labour Absence in Australia," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 232-239, May.
  • Handle: RePEc:tpr:restat:v:71:y:1989:i:2:p:232-39

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    References listed on IDEAS

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    5. Butler, Richard J & Worrall, John D, 1983. "Workers' Compensation: Benefit and Injury Claims Rates in the Seventies," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 580-589, November.
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    7. Ronald G. Ehrenberg, 1985. "Workers' Compensation, Wages, and the Risk of Injury," NBER Working Papers 1538, National Bureau of Economic Research, Inc.
    8. Breusch, Trevor S & Mizon, Grayham E & Schmidt, Peter, 1989. "Efficient Estimation Using Panel Data," Econometrica, Econometric Society, vol. 57(3), pages 695-700, May.
    9. H. Allan Hunt & Alan B. Krueger & John F. Burton Jr., 1988. "The Impact of Open competition in Michigan on the Employers' costs of Workers' Compensation," Book chapters authored by Upjohn Institute researchers,in: Workers' Compensation Insurance Pricing: Current Programs and Proposed Reform, pages 109-144 W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. Jan Erik Askildsen & Espen Bratberg & Øivind Anti Nilsen, 2005. "Unemployment, labor force composition and sickness absence: a panel data study," Health Economics, John Wiley & Sons, Ltd., vol. 14(11), pages 1087-1101.
    2. Georges Dionne & Benoit Dostie, 2007. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," ILR Review, Cornell University, ILR School, vol. 61(1), pages 108-120, October.
    3. Solveig Osborg Ose & Jan Morten Dyrstad, 2001. "Non-linear Unemployment Effects in Sickness Absence: Discipline or Composition Effects?," Working Paper Series 2502, Department of Economics, Norwegian University of Science and Technology.
    4. Andrén, Daniela, 2001. "Short-Term Absenteeism Due To Sickness: The Swedish Experience, 1986 - 1991," Working Papers in Economics 46, University of Gothenburg, Department of Economics.
    5. Moral De Blas, Alfonso & Corrales-Herrero, Helena & Martín-Román, Ángel, 2012. "Glass Ceiling or Slippery Floors? Understanding Gender Differences in the Spanish Worker’s Compensation System/¿Techo de cristal o suelo resbaladizo? Comprendiendo las diferencias de género en el sist," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 311-340, Abril.
    6. Bratberg, Espen & Monstad, Karin, 2015. "Worried sick? Worker responses to a financial shock," Labour Economics, Elsevier, vol. 33(C), pages 111-120.
    7. Ilias Livanos & Alexandros Zangelidis, 2013. "Unemployment, Labor Market Flexibility, and Absenteeism: A Pan-European Study," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(2), pages 492-515, April.
    8. Livanos, Ilias & Zangelidis, Alexandros, 2010. "Sickness Absence: a Pan-European Study," MPRA Paper 22627, University Library of Munich, Germany.
    9. W.H.J. Hassink & P. Koning, 2005. "Do Financial Bonuses to Employees Reduce their Absenteeism? Outcome of a Lottery," Working Papers 05-27, Utrecht School of Economics.
    10. Veliziotis, Michail, 2010. "Unionization and sickness absence from work in the UK," ISER Working Paper Series 2010-15, Institute for Social and Economic Research.
    11. Kaiser, Carl P., 1998. "What do we know about employee absence behavior? An interdisciplinary interpretation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 27(1), pages 79-96.
    12. Danielle Venn, 2003. "Non-standard work timing: evidence from the Australian Time Use Survey," Department of Economics - Working Papers Series 866, The University of Melbourne.
    13. Jan M.P. de Kok, 1997. "Involuntary Absence from an Organizational Point of View," Tinbergen Institute Discussion Papers 97-126/3, Tinbergen Institute.
    14. Audas, Rick & Goddard, John, 2001. "Absenteeism, seasonality, and the business cycle," Journal of Economics and Business, Elsevier, vol. 53(4), pages 405-419.
    15. Keith A. Bender & John Douglas Satun, 2009. "Constrained By Hours And Restricted In Wages: The Quality Of Matches In The Labor Market," Economic Inquiry, Western Economic Association International, vol. 47(3), pages 512-529, July.
    16. Gudrun Biffl, 2002. "Worker Absenteeism Due to Sickness and Accidents. A Key Labour Market Indicator," WIFO Monatsberichte (monthly reports), WIFO, vol. 75(1), pages 39-52, January.

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