Arbeitspapier

The strength of the weakest link: Sickness absence, internal substitutability and worker-firm matching

We study how employee sickness absence affects worker-firm matching. We build on the idea that firms are sensitive to absence in jobs with few substitutes (unique positions). Consistent with this, we show that unique employees are less absent conditional on individual characteristics, establishment fixed effects and detailed occupational information. Half of this association is explained by sorting of low-absence workers into unique positions but sorting is less pronounced under imperfect information. Finally, job separations respond more to realized sickness absence in unique positions. The findings suggest that the cost of production disruptions is an important aspect of firms' hiring choices.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2015:28

Classification
Wirtschaft
Labor Demand
Human Capital; Skills; Occupational Choice; Labor Productivity
Organization of Production
Personnel Economics: Firm Employment Decisions; Promotions
Subject
sickness absence
production disruption
coworker substitutes
hiring strategies

Event
Geistige Schöpfung
(who)
Hensvik, Lena
Rosenqvist, Olof
Event
Veröffentlichung
(who)
Institute for Evaluation of Labour Market and Education Policy (IFAU)
(where)
Uppsala
(when)
2015

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Hensvik, Lena
  • Rosenqvist, Olof
  • Institute for Evaluation of Labour Market and Education Policy (IFAU)

Time of origin

  • 2015

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