Coming to work while sick: An economic theory of presenteeism with an application to German data

Hirsch B, Lechmann D, Schnabel C (2017)

Publication Language: English

Publication Type: Journal article

Publication year: 2017

Journal

Oxford Economic Papers Oxford University Press (OUP): Policy F - Oxford Open Option D

Book Volume: 69

Pages Range: 1010-1031

Journal Issue: 4

Abstract

Presenteeism, i.e. attending work while sick, is widespread and associated with significant costs. Still, economic analyses of this phenomenon are rare. In a theoretical model, we show that presenteeism arises due to differences between workers in (health-related) disutility from workplace attendance. As these differences are unobservable by employers, they set wages that incentivise sick workers to attend work. Using a large representative German data set, we test several hypotheses derived from our model. In line with our predictions, we find that bad health status and stressful working conditions are positively related to presenteeism. Better dismissal protection, captured by higher tenure, is associated with slightly fewer presenteeism days, whereas the role of productivity and skills is inconclusive.

Authors with CRIS profile

Daniel Lechmann Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Involved external institutions

Leuphana Universität Lüneburg DE Germany (DE)

How to cite

APA:

Hirsch, B., Lechmann, D., & Schnabel, C. (2017). Coming to work while sick: An economic theory of presenteeism with an application to German data. Oxford Economic Papers, 69(4), 1010-1031.

MLA:

Hirsch, Boris, Daniel Lechmann, and Claus Schnabel. "Coming to work while sick: An economic theory of presenteeism with an application to German data." Oxford Economic Papers 69.4 (2017): 1010-1031.

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