Poisson Models with Employer-Employee Unobserved Heterogeneity: An Application to Absence Data

25 Pages Posted: 25 May 2007

See all articles by Jean-François Angers

Jean-François Angers

University of Montreal - Center for Research on Transportation

Denise Desjardins

University of Montreal - Center for Research on Transportation

Georges Dionne

HEC Montreal - Department of Finance

Benoit Dostie

HEC Montreal - Institute of Applied Economics; IZA Institute of Labor Economics

François Guertin

University of Montreal - Center for Research on Transportation

Date Written: April 2007

Abstract

We propose a parametric model based on the Poisson distribution that permits to take into account both unobserved worker and workplace heterogeneity as long as both effects are nested. By assuming that workplace and worker unobserved heterogeneity components follow a gamma and a Dirichlet distribution respectively, we obtain a closed form for the unconditional density function. We estimate the model to obtain the determinants of absenteeism using linked employer-employee Canadian data from the Workplace and Employee Survey (2003). Coefficient estimates are interpreted in the framework of the typical labor-leisure model. We show that omitting unobserved heterogeneity on either side of the employment relationship leads to notable biases in the estimated coefficients. In particular, the impact of wages on absences is underestimated in simpler models.

Keywords: Absenteeism, Linked Employer-Employee Data, Employer-Employee Unobserved Heterogeneity, Count Data Models, Dirichlet Distribution

JEL Classification: J22, J29, C23

Suggested Citation

Angers, Jean-François and Desjardins, Denise and Dionne, Georges and Dostie, Benoit and Guertin, François, Poisson Models with Employer-Employee Unobserved Heterogeneity: An Application to Absence Data (April 2007). Available at SSRN: https://ssrn.com/abstract=988986 or http://dx.doi.org/10.2139/ssrn.988986

Jean-François Angers

University of Montreal - Center for Research on Transportation ( email )

C.P. 6128, Succ. Centre-Ville
Montreal, Quebec H3C 3J7
Canada

Denise Desjardins

University of Montreal - Center for Research on Transportation ( email )

C.P. 6128, Succ. Centre-Ville
Montreal, Quebec H3C 3J7
Canada

Georges Dionne (Contact Author)

HEC Montreal - Department of Finance ( email )

3000 Chemin de la Cote-Sainte-Catherine
Montreal, Quebec H3T 2A7
Canada
514-340-6596 (Phone)
514-340-5019 (Fax)

HOME PAGE: http://www.hec.ca/gestiondesrisques/

Benoit Dostie

HEC Montreal - Institute of Applied Economics ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada
514-340-6453 (Phone)
514-340-6469 (Fax)

HOME PAGE: http://www.hec.ca/profs/benoit.dostie.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

François Guertin

University of Montreal - Center for Research on Transportation ( email )

C.P. 6128, Succ. Centre-Ville
Montreal, Quebec H3C 3J7
Canada

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