Absenteeism, Productivity, and Relational Contracts Inside the Firm

Coordinated firm-level work processes and macroeconomic resilience

“…For instance, Grinza and Rycx (2020) reports that an increase of 1 percentage point in the sickness absenteeism rate results in a productivity loss of 0.66 percent for Belgian private firms from 1999 to 2007. Adhvaryu et al (2021) find that a ten percentage-point increase in absenteeism decreases productivity by roughly four percentage points, even though sharing workers is implemented as common practice to mitigate worker absence in the sample Indian garment factories. They also document that worker absenteeism shocks are frequent and large in firms.…”