Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave

Georges Dionne and Benoit Dostie ()

No 3642, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Using linked employer-employee data from the Canadian Workplace and Employee Survey 1999-2004, we provide new evidence on how the cost of absence affects labor supply decisions. We use a particular feature of the data by which total absences are divided into three separate categories: sick paid days, other paid days and unpaid days. This division introduces variations in the way workers are compensated for absence (the cost of absence) and allows us to estimate more precisely how variations in such costs affect absenteeism decisions. We find an absence elasticity of -0.37. We also find unobserved heterogeneity to play different roles for workers and workplaces: some workers are more frequently absent whatever the reason, but paid and unpaid leaves are negatively correlated at the workplace level.

Keywords: absenteeism; linked employer-employee data; unobserved heterogeneity; count data model; correlated random effects (search for similar items in EconPapers)
JEL-codes: J22 M52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec
Date: 2008-08
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Related works:
Working Paper: Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave (2008)
Working Paper: Correlated Poisson Processes with Unobserved Heterogeneity: Estimating the Determinants of Paid and Unpaid Leave (2008)
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