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How Much Does Absenteeism Cost?

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  • Steven G. Allen

Abstract

This paper presents evidence on the output loss resulting from absenteeism. Hedonic wage equations are estimated over two different data sets-the 1972-1973 Quality of Employment Survey and the pooled May 1973-1975 Current Population Survey-to calculate the cost in terms of reduced output and increased labor costs per payroll hour. Also, a manufacturing production function is estimated to directly compute the productivity loss. The results indicate that the effect of absenteeism on output is quite small: a 10 percentage point increase in the absence rate is associated with at most a 2.1 percent decrease in the wage.

Suggested Citation

  • Steven G. Allen, 1983. "How Much Does Absenteeism Cost?," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 379-393.
  • Handle: RePEc:uwp:jhriss:v:18:y:1983:i:3:p:379-393
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    1. repec:spr:eujhec:v:18:y:2017:i:9:d:10.1007_s10198-017-0878-6 is not listed on IDEAS
    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. David Marsden & Simone Moriconi, 2009. "'The Value of Rude Health': Employees' Well Being, Absence and Workplace Performance," CEP Discussion Papers dp0919, Centre for Economic Performance, LSE.
    4. 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.
    5. Georges Dionne & Benoit Dostie, 2008. "Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave," Cahiers de recherche 08-07, HEC Montréal, Institut d'économie appliquée.
    6. Ángel Martín-Román & Alfonso Moral, 2017. "A methodological proposal to evaluate the cost of duration moral hazard in workplace accident insurance," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(9), pages 1181-1198, December.
    7. Regt Erik R. de, 2005. "Overtime and Short-time with Fluctuating Absenteeism and Demand," Research Memorandum 026, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    8. Mohamed Ali Ben Halima & Thierry Debrand, 2011. "Durée d’arrêt de travail, salaire et Assurance maladie : application microéconométrique à partir de la base Hygie," Working Papers DT42, IRDES institut for research and information in health economics, revised Sep 2011.
    9. Ronald G. Ehrenberg & Randy A. Ehrenberg & Daniel I. Rees & REric L. Ehrenberg, 1991. "School District Leave Policies, Teacher Absenteeism, and Student Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 72-105.
    10. Thalmaier, Anja, 1999. "Bestimmungsgründe von Fehlzeiten: Welche Rolle spielt die Arbeitslosigkeit?," IZA Discussion Papers 62, Institute for the Study of Labor (IZA).
    11. Pfeifer, Christian & Sohr, Tatjana, 2008. "Analysing the Gender Wage Gap Using Personnel Records of a Large German Company," IZA Discussion Papers 3533, Institute for the Study of Labor (IZA).
    12. 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.

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