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Absence From Work, Sick Pay and Positional Consumption Concerns
Author(s) -
Goerke Laszlo
Publication year - 2019
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12144
Subject(s) - profitability index , consumption (sociology) , work (physics) , affect (linguistics) , economics , labour supply , sick leave , working hours , demographic economics , labour economics , psychology , mechanical engineering , social science , sociology , engineering , communication , finance
Abstract We analyse labour supply and absence from work choices, assuming that individual preferences exhibit relative consumption concerns. We show that contractual hours and the length of absence periods may vary equally with the strength of positional considerations. In this case, positional concerns do not affect their difference, i.e. overall or effective working time. Moreover, the nature and intensity of relative consumption effects influence the impact of sick pay and of true illness periods on contractual work hours and absence behaviour. Consequently, the profitability of employing individuals also varies with the strength of their positional concerns.