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Measuring the effects of work loss on productivity with team production

  • Sean Nicholson

    (Department of Policy Analysis and Management, Cornell University, USA)

  • Mark V. Pauly

    (Health Care Systems Department, The Wharton School, University of Pennsylvania, USA)

  • Daniel Polsky

    (General Internal Medicine, Department of Medicine, University of Pennsylvania, USA)

  • Claire Sharda

    (USHH Outcomes Research & Management, Merck & Co., Inc., USA)

  • Helena Szrek

    (Health Care Systems Department, The Wharton School, University of Pennsylvania, USA)

  • Marc L. Berger

    (USHH Outcomes Research & Management, Merck & Co., Inc., USA)

Using data from a survey of 800 managers in 12 industries, we find empirical support for the hypothesis that the cost associated with missed work varies across jobs according to the ease with which a manager can find a perfect replacement for the absent worker, the extent to which the worker functions as part of a team, and the time sensitivity of the worker's output. We then estimate wage 'multipliers' for 35 different jobs, where the multiplier is defined as the cost to the firm of an absence as a proportion (often greater than one) of the absent worker's daily wage. The median multiplier is 1.28, which supports the view that the cost to the firm of missed work is often greater than the wage. Copyright © 2005 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1052
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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 2 ()
Pages: 111-123

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Handle: RePEc:wly:hlthec:v:15:y:2006:i:2:p:111-123
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Mark V. Pauly & Sean Nicholson & Judy Xu & Dan Polsky & Patricia M. Danzon & James F. Murray & Marc L. Berger, 2002. "A general model of the impact of absenteeism on employers and employees," Health Economics, John Wiley & Sons, Ltd., vol. 11(3), pages 221-231.
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