Employee Health and Firm Performance

66 Pages Posted: 8 Mar 2022 Last revised: 6 Feb 2024

See all articles by Daniel A. Rettl

Daniel A. Rettl

University of Georgia - Department of Banking and Finance

Alexander Schandlbauer

University of Southern Denmark ; Danish Finance Institute

Mircea Trandafir

Rockwool Foundation Research Unit

Multiple version iconThere are 2 versions of this paper

Date Written: January 30, 2024

Abstract

Using administrative data on the universe of private firms in Denmark, we find that even temporary and small health shocks to employee health like seasonal influenza can significantly reduce firm profitability. The effects are driven by labor-intensive firms and decrease in firm size and financial flexibility, suggesting that firms that are better able to shift resources can insulate themselves better. Our results indicate that employees are shielded from these negative effects, while owners (especially of small firms) see reduced dividends. Back-of-the-envelope calculations propose that all but the largest firms may benefit from subsidizing vaccination programs for their employees.

Keywords: seasonal influenza, health shock, employee health, firm performance

JEL Classification: L25, I12, G30, J31

Suggested Citation

Rettl, Daniel A. and Schandlbauer, Alexander and Trandafir, Mircea, Employee Health and Firm Performance (January 30, 2024). Available at SSRN: https://ssrn.com/abstract=4022672 or http://dx.doi.org/10.2139/ssrn.4022672

Daniel A. Rettl

University of Georgia - Department of Banking and Finance ( email )

Terry College of Business
Athens, GA 30602-6253
United States

Alexander Schandlbauer (Contact Author)

University of Southern Denmark ( email )

Campusvej 55
5230
Denmark

HOME PAGE: http://sites.google.com/site/alexanderschandlbauer/

Danish Finance Institute ( email )

Mircea Trandafir

Rockwool Foundation Research Unit ( email )

Sejroegade 11
DK-2100 Copenhagen
Denmark

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