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Measuring the effects of work loss on productivity with team production

Sean Nicholson, Mark V. Pauly, Daniel Polsky, Claire Sharda, Helena Szrek and Marc L. Berger
Additional contact information
Mark V. Pauly: Health Care Systems Department, The Wharton School, University of Pennsylvania, USA, Postal: Health Care Systems Department, The Wharton School, University of Pennsylvania, USA
Daniel Polsky: General Internal Medicine, Department of Medicine, University of Pennsylvania, USA, Postal: General Internal Medicine, Department of Medicine, University of Pennsylvania, USA
Claire Sharda: USHH Outcomes Research & Management, Merck & Co., Inc., USA, Postal: USHH Outcomes Research & Management, Merck & Co., Inc., USA
Helena Szrek: Health Care Systems Department, The Wharton School, University of Pennsylvania, USA, Postal: Health Care Systems Department, The Wharton School, University of Pennsylvania, USA
Marc L. Berger: USHH Outcomes Research & Management, Merck & Co., Inc., USA, Postal: USHH Outcomes Research & Management, Merck & Co., Inc., USA

Health Economics, 2006, vol. 15, issue 2, 111-123

Abstract: Using data from a survey of 800 managers in 12 industries, we find empirical support for the hypothesis that the cost associated with missed work varies across jobs according to the ease with which a manager can find a perfect replacement for the absent worker, the extent to which the worker functions as part of a team, and the time sensitivity of the worker's output. We then estimate wage 'multipliers' for 35 different jobs, where the multiplier is defined as the cost to the firm of an absence as a proportion (often greater than one) of the absent worker's daily wage. The median multiplier is 1.28, which supports the view that the cost to the firm of missed work is often greater than the wage. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2006
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