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How Much Does Absenteeism Cost?

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  • Steven G. Allen

Abstract

This paper presents evidence on the output loss resulting from absenteeism. Hedonic wage equations are estimated over two different data sets-the 1972-1973 Quality of Employment Survey and the pooled May 1973-1975 Current Population Survey-to calculate the cost in terms of reduced output and increased labor costs per payroll hour. Also, a manufacturing production function is estimated to directly compute the productivity loss. The results indicate that the effect of absenteeism on output is quite small: a 10 percentage point increase in the absence rate is associated with at most a 2.1 percent decrease in the wage.

Suggested Citation

  • Steven G. Allen, 1983. "How Much Does Absenteeism Cost?," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 379-393.
    • Handle: RePEc:uwp:jhriss:v:18:y:1983:i:3:p:379-393
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