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Sickness Absence and Relative Income

Author

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  • Laszlo Goerke

    (Institute for Labour Law and Industrial Relations in the European Union IAAEU), Trier University)

Abstract

We analyse labour supply and absence from work choices, assuming that individual preferences exhibit relative consumption concerns. We show that contractual hours and the length of absence periods may vary equally with the strength of positional considerations. In this case, positional concerns do not affect their difference, i.e. overall or effective working time. Moreover, the nature and intensity of relative consumption effects influence the impact of sick pay and of true illness periods on contractual work hours and absence behaviour. Consequently, the profitability of employing individuals also varies with the strength of their positional concerns.

Suggested Citation

  • Laszlo Goerke, 2018. "Sickness Absence and Relative Income," IAAEU Discussion Papers 201812, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    • Handle: RePEc:iaa:dpaper:201812
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    References listed on IDEAS

    as
    1. Marco de Pinto & Laszlo Goerke, 2020. "Welfare‐enhancing Trade Unions in an Oligopoly with Excessive Entry," Manchester School, University of Manchester, vol. 88(1), pages 60-90, January.
    2. Makarski, Krzysztof & Tyrowicz, Joanna, 2019. "On welfare effects of increasing retirement age," Journal of Policy Modeling, Elsevier, vol. 41(4), pages 718-746.
    3. Goerke, Laszlo & Pannenberg, Markus, 2015. "Direct evidence for income comparisons and subjective well-being across reference groups," Economics Letters, Elsevier, vol. 137(C), pages 95-101.
    4. Karolina Goraus & Krzysztof Makarski & Joanna Tyrowicz, 2014. "Does social security reform reduce gains from increasing the retirement age?," Working Papers 2014-03, Faculty of Economic Sciences, University of Warsaw.
    5. Laszlo Goerke, 2017. "Sick pay reforms and health status in a unionised labour market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(2), pages 115-142, May.
    6. Joanna Tyrowicz & Lucas van der Velde & Irene van Staveren, 2018. "Does Age Exacerbate the Gender-Wage Gap? New Method and Evidence From Germany, 1984–2014," Feminist Economics, Taylor & Francis Journals, vol. 24(4), pages 108-130, October.
    7. Laszlo Goerke, 2017. "Tax evasion in a Cournot oligopoly with endogenous entry," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(5), pages 754-779, September.
    8. Chadi, Adrian, 2021. "Identification of attrition bias using different types of panel refreshments," Economics Letters, Elsevier, vol. 201(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    absence; labour supply; positional concerns; relative consumption; sick pay;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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