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Absence Penalties and Work Attendance

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  • Jeffrey Balchin
  • Mark Wooden

Abstract

This article extends previous economic treatments of the work attendance decision by providing a more complete specification of the absence penalty function. In particular, the penalty for absence is modelled as a function of both the opportunity cost of dismissal for excessive absence and the level of threat of dismissal chosen by management to control absence. Moreover, since the probability of dismissal is itself a function of the absence rate, a simultaneous system is posited. Strong support for the model is found in workplace‐level data collected as part of the 1989–90 Australian Workplace Industrial Relations Survey.

Suggested Citation

  • Jeffrey Balchin & Mark Wooden, 1995. "Absence Penalties and Work Attendance," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 28(4), pages 43-58, October.
    • Handle: RePEc:bla:ausecr:v:28:y:1995:i:4:p:43-58
    DOI: 10.1111/j.1467-8462.1995.tb00903.x
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    Cited by:

    1. Joanne Loundes, 2000. "Management and Industrial Relations Practices and Outcomes in Australian Workplaces," Melbourne Institute Working Paper Series wp2000n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Arne Mastekaasa, 2013. "Unionization and Certified Sickness Absence: Norwegian Evidence," ILR Review, Cornell University, ILR School, vol. 66(1), pages 117-141, January.
    3. Veliziotis, Michail, 2010. "Unionization and sickness absence from work in the UK," ISER Working Paper Series 2010-15, Institute for Social and Economic Research.
    4. Roger Wilkins & Mark Wooden, 2013. "Gender Differences in Involuntary Job Loss: Why Are Men More Likely to Lose Their Jobs?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(2), pages 582-608, April.
    5. Danielle Venn, 2003. "Non-standard work timing: evidence from the Australian Time Use Survey," Department of Economics - Working Papers Series 866, The University of Melbourne.
    6. Kim, Namhoon & Mountain, Travis P., 2018. "Do we consider paid sick leave when deciding to get vaccinated?," Social Science & Medicine, Elsevier, vol. 198(C), pages 1-6.

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