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Absence and Overtime Work:Empirical Evidence from Norway


  • Solveig Osborg Ose

    () (Department of Economics, Norwegian University of Science and Technology)

  • Jan Morten Dyrstad



This paper presents both theoretical and empirical analyses of the relationship between overtime work and absence. Demand for absence is analysed under the assumption that workers in a given firm can be represented by one of two types of workers, denoted overemployed and underemployed. Increased demand for overtime hours has a nonpositive effect on absence. If actual overtime pay is higher than the reservation wage, a higher demand for overtime hours will reduce absence. Otherwise absence is unaffected. On the other hand, demand for overtime increases if absence increases. The empirical analysis is carried out on quarterly panel data from 263 firms, covering the time period 1990-96. The empirical results confirm the theoretical predictions except from the effect of overtime hours on absence, where positive elasticities are estimated.

Suggested Citation

  • Solveig Osborg Ose & Jan Morten Dyrstad, 1999. "Absence and Overtime Work:Empirical Evidence from Norway," Working Paper Series 2602, Department of Economics, Norwegian University of Science and Technology.
  • Handle: RePEc:nst:samfok:2602

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    References listed on IDEAS

    1. A. Bhargava & L. Franzini & W. Narendranathan, 2006. "Serial Correlation and the Fixed Effects Model," World Scientific Book Chapters,in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 4, pages 61-77 World Scientific Publishing Co. Pte. Ltd..
    2. Brown, Sarah & Sessions, John G, 1996. " The Economics of Absence: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 10(1), pages 23-53, March.
    3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
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    More about this item


    Absenteeism; overtime work;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure


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