Measuring the Effects of Workloss on Productivity with Team Production

27 Pages Posted: 4 Aug 2004 Last revised: 22 Jul 2010

See all articles by Sean Nicholson

Sean Nicholson

Cornell University - Department of Policy Analysis & Management (PAM); National Bureau of Economic Research (NBER)

Mark V. Pauly

University of Pennsylvania - Health Care Systems Department; National Bureau of Economic Research (NBER)

Daniel Polsky

Bloomberg School of Public Health, Department of Health Policy and Management, Johns Hopkins University; Johns Hopkins University - Carey Business School

Claire Sharda

Merck & Co., Inc. - USHH Outcomes Research & Management

Helena Szrek

University of Pennsylvania - The Wharton School

Marc L Berger

Merck & Co., Inc. - USHH Outcomes Research & Management

Date Written: July 2004

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.

Suggested Citation

Nicholson, Sean and Pauly, Mark V. and Polsky, Daniel and Sharda, Claire and Szrek, Helena and Berger, Marc L., Measuring the Effects of Workloss on Productivity with Team Production (July 2004). NBER Working Paper No. w10632. Available at SSRN: https://ssrn.com/abstract=565843

Sean Nicholson (Contact Author)

Cornell University - Department of Policy Analysis & Management (PAM) ( email )

120 Martha Van Rensselaer Hall
Ithaca, NY 14853
United States
607-254-6498 (Phone)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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Mark V. Pauly

University of Pennsylvania - Health Care Systems Department ( email )

3641 Locust Walk
208 Colonial Penn Center
Philadelphia, PA 19104-6358
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Daniel Polsky

Bloomberg School of Public Health, Department of Health Policy and Management, Johns Hopkins University ( email )

624 North Broadway
Baltimore, MD 21205
United States

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

Claire Sharda

Merck & Co., Inc. - USHH Outcomes Research & Management ( email )

770 Sumneytown Pike
WP39-166
West Point, PA 19486
United States

Helena Szrek

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Marc L. Berger

Merck & Co., Inc. - USHH Outcomes Research & Management ( email )

770 Sumneytown Pike
WP39-166
West Point, PA 19486
United States

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