Absenteeism is the single most important cause of lost labour time,
yet it has received much less scholarly attention than more
dramatic forms of industrial disruption, such as strikes. Arguing
that any explanation of absence rates must take into account the
interests of both employers and employees, this book constructs a
model of the markets for absence and sick pay. These are not
independent since sick pay affects workers' incentives to be
absent, and absences affect employers' willingness to pay sick pay.
The book reviews the available empirical evidence relating to both
markets, stressing the importance of careful identification of the
effect of the price of absence on demand, since this is a crucial
quantity for firms' policies. It concludes by discussing the
implications of the model for human resources management, and for
the role of the state in sick pay provision.
General
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