Worker absenteeism in search equilibrium
2007 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 109, no 3, 439-467 p.Article in journal (Refereed) Published
In this paper we introduce a general equilibrium model of search unemployment that incorporates absence from work as a distinct labor force state. Absenteeism is driven by random shocks to the value of leisure that are private information to the workers. Firms maximize profits while recognizing that the compensation package may affect the queue of job applicants and the absence rate. The analysis provides results concerning the effects of social insurance benefits and other determinants of workers' and firms' behavior. The normative analysis identifies externalities associated with firm-provided sick pay and examines the welfare implications of alternative policies.
Place, publisher, year, edition, pages
2007. Vol. 109, no 3, 439-467 p.
absenteeism, search, unemployment, social insurance
Economics and Business
IdentifiersURN: urn:nbn:se:uu:diva-142577DOI: 10.1111/j.1467-9442.2007.00501.xISI: 000251206700001OAI: oai:DiVA.org:uu-142577DiVA: diva2:387703