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Innovative Work Practices and Sickness Absence: What Does a Nationally Representative Employee Survey Tell?

  • Böckerman, Petri
  • Johansson, Edvard
  • Kauhanen, Antti

The paper examines the effect of innovative work practices on the prevalence of sickness absence and accidents at work. We focus on several different aspects of workplace innovations (self-managed teams, information sharing, employer-provided training and incentive pay) along with the “bundles” of those practices. We use nationally representative individual level data from the Finnish Quality of Work Life Survey from 2008. Using single equation models, we find that innovative work practices increase short-term sickness absence for blue-collar and lower white-collar employees. In two-equation models that treat innovative workplace practices as endogenous variables we do not find relationship between innovative work practices and sickness absence or accidents at work.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1199.

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Length: 30 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:rif:dpaper:1199
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  1. John Godard, 2001. "High performance and the transformation of work? The implications of alternative work practices for the experience and outcomes of work," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 776-805, July.
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  3. Ann P. Bartel, 2004. "Human resource management and organizational performance: Evidence from retail banking," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(2), pages 181-203, January.
  4. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  5. Böckerman, Petri & Ilmakunnas, Pekka, 2007. "Job disamenities, job satisfaction, quit intentions, and actual separations: putting the pieces together," MPRA Paper 3245, University Library of Munich, Germany.
  6. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High-Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
  7. David Fairris & Mark Brenner, 2001. "Workplace Transformation and the Rise in Cumulative Trauma Disorders: Is There a Connection?," Journal of Labor Research, Transaction Publishers, vol. 22(1), pages 15-28, January.
  8. Böckerman, Petri & Ilmakunnas, Pekka, 2008. "Interaction of working conditions, job satisfaction, and sickness absences: Evidence from a representative sample of employees," Social Science & Medicine, Elsevier, vol. 67(4), pages 520-528, August.
  9. 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.
  10. Alex Bryson & Harald Dale-Olsen & Erling Barth, 2009. "How does innovation affect worker well-being?," LSE Research Online Documents on Economics 27781, London School of Economics and Political Science, LSE Library.
  11. Georges Dionne & Benoit Dostie, 2005. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," Cahiers de recherche 05-04, HEC Montréal, Institut d'économie appliquée.
  12. Tim A. Barmby & Marco G. Ercolani & John G. Treble, 2002. "Sickness Absence: An International Comparison," Economic Journal, Royal Economic Society, vol. 112(480), pages F315-F331, June.
  13. David Neumark & Peter Cappelli, 1999. "Do "High Performance" Work Practices Improve Establishment-Level Outcomes?," NBER Working Papers 7374, National Bureau of Economic Research, Inc.
  14. L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters, in: Credit and State Theories of Money, chapter 1 Edward Elgar.
  15. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," United Kingdom Stata Users' Group Meetings 2003 10, Stata Users Group.
  16. Caroli, Eve & Askenazy, Philippe, 2010. "Innovative Work Practices, Information Technologies, and Working Conditions : Evidence for France," Economics Papers from University Paris Dauphine 123456789/7143, Paris Dauphine University.
  17. Colin Green & John S. Heywood, 2008. "Does Performance Pay Increase Job Satisfaction?," Economica, London School of Economics and Political Science, vol. 75(300), pages 710-728, November.
  18. John Godard, 2004. "A Critical Assessment of the High-Performance Paradigm," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 349-378, 06.
  19. Wilde, Joachim, 2000. "Identification of multiple equation probit models with endogenous dummy regressors," Economics Letters, Elsevier, vol. 69(3), pages 309-312, December.
  20. Chiara Monfardini & Rosalba Radice, 2008. "Testing Exogeneity in the Bivariate Probit Model: A Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 271-282, 04.
  21. Sandra E. Black & Lisa M. Lynch, 2000. "What's Driving the New Economy: The Benefits of Workplace Innovation," NBER Working Papers 7479, National Bureau of Economic Research, Inc.
  22. Alex Bryson & Francis Green & Keith Whitfield, 2008. "A Quarter Century of Workplace Employment Relations Surveys," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 577-586, December.
  23. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
  24. Canice Prendergast, 2002. "The Tenuous Trade-off between Risk and Incentives," Journal of Political Economy, University of Chicago Press, vol. 110(5), pages 1071-1102, October.
  25. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  26. Kochan, Thomas A., 1996. "What works at work : overview and assessment," Working papers 3886-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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