Measuring workers' health and psychosocial work-environment on firm productivity
We discuss a model for analyzing and measuring workers' health and psychosocial work-environment on firm productivity. Productivity is measured through the Malmquist productivity index approach using Data Envelopment Analysis. A novel component of the model is that in addition to standard quantity (or tradable) vairables, we incorporate quality (or non-tradable) variables. Specifically we focus on two quality input variables: workers' health status and psychosocial work-environment. The two variables are modeled as latent or unobserved variables using Item Response Theory. Changes over time in productivity are decomposed to asses the contribution from the changes of the input quality variables. The model is illustrated using data from a worksite health promotion program conducted at three large Swedish manufacturing plants (2 paper mills, 1 steel factory) from 2000 to 2003. Over the four years we observe a general improvement in efficiency of 2-5 %, out of which half can be attributed to the improvement in the quality input variables.
|Date of creation:||04 Oct 2012|
|Date of revision:|
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- Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
- Fare, Rolf & Grosskopf, Shawna & Kokkelenberg, Edward C, 1989. "Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 655-66, August.
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