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Incentives and Selection in Cyclical Absenteeism


  • Arai, Mahmood

    (Trade Union Institute for Economic Research)

  • Skogman Thoursie, Peter

    (Trade Union Institute for Economic Research)


Procyclical absenteeism might be due to higher sick-rates of marginal workers, or a consequence of procyclical sick-report incentives. These hypotheses predict opposite signs for the correlation between sick-rates and shares of temporary contracts. This is the case, when the share of temporary contracts is a proxy for the share of marginal workers, and an indicator of stronger incentives for job presence of temporary employees who have generally weaker job security than those on permanent contracts. Using industry-region panel data, we find a stable negative correlation between sick-rates and shares of temporary contracts implying that procyclical sick-rate is compatible with the idea that sick-report incentives are procyclical.

Suggested Citation

  • Arai, Mahmood & Skogman Thoursie, Peter, 2001. "Incentives and Selection in Cyclical Absenteeism," Working Paper Series 167, Trade Union Institute for Economic Research.
  • Handle: RePEc:hhs:fiefwp:0167

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    More about this item


    Absenteeism; Temporary Employment;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply


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