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Measuring the Effects of Workloss on Productivity with Team ProductionSean NicholsonCornell University - Department of Policy Analysis & Management (PAM); National Bureau of Economic Research (NBER) Mark V. PaulyUniversity of Pennsylvania - Health Care Systems Department; National Bureau of Economic Research (NBER) Daniel PolskyUniversity of Pennsylvania - School of Medicine Claire ShardaMerck & Co., Inc. - USHH Outcomes Research & Management Helena SzrekUniversity of Pennsylvania - The Wharton School Marc L BergerMerck & Co., Inc. - USHH Outcomes Research & Management July 2004 NBER Working Paper No. w10632 Abstract: Using data from a survey of 800 managers in 12 industries, we find empirical support for the hypothesis that the cost associated with missed work varies across jobs according to the ease with which a manager can find a perfect replacement for the absent worker, the extent to which the worker functions as part of a team, and the time sensitivity of the worker's output. We then estimate wage multipliers' for 35 different jobs, where the multiplier is defined as the cost to the firm of an absence as a proportion (often greater than one) of the absent worker's daily wage. The median multiplier is 1.28, which supports the view that the cost to the firm of missed work is often greater than the wage.
Number of Pages in PDF File: 27 working papers seriesDate posted: August 4, 2004Suggested CitationContact Information
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