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Analysing absence behaviour using event history models
Author(s) -
Barmby Tim,
Sibly Suzyrman
Publication year - 2004
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1136
Subject(s) - remuneration , event (particle physics) , markov chain , economics , scheme (mathematics) , markov model , econometrics , microeconomics , actuarial science , operations management , operations research , statistics , mathematics , finance , mathematical analysis , physics , quantum mechanics
This paper analyses the absence behaviour of a group of industrial workers. Part of their remuneration scheme comprises an experience rated sick‐pay scheme (linking level of sickpay to past absence) which determines the cost of a day's absence for a worker, both contemporaneously and in terms of expected future cost. This cost is explicitly computed for each worker and we show that this cost is negatively related to absence. Using an event history model with a Markov structure for the absence histories the size of this effect is shown to depend on the state occupied. Copyright © 2004 John Wiley & Sons, Ltd.