IDEAS home Printed from
   My bibliography  Save this paper

Measuring workers' health and psychosocial work-environment on firm productivity


  • Ödegaard, Fredrik

    () (Ivey School of Business, Western University)

  • Roos, Pontus

    (R.R. Institute of Applied Economics)


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.

Suggested Citation

  • Ödegaard, Fredrik & Roos, Pontus, 2012. "Measuring workers' health and psychosocial work-environment on firm productivity," Working Paper Series 2012:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2012_017

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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 655-666, August.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Productivity; Decomposition of efficiency; Human resource management; Health status; Psychosocial work-environment; Ordinal data; Latent variables;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • I10 - Health, Education, and Welfare - - Health - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:ifauwp:2012_017. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Fällgren). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.