Absenteeism in a Low-wage Setting

Abstract

This study uses a unique data set, a low-paying manufacturing plant, to test many stylised facts of absenteeism. Analysis of both the demographic characteristics of employees, and external factors shows that female staff are more “reliable” and those who are promoted less so. The plant exhibited poor performance across many indicators and so managers introduced several improvements to pay and conditions. The reaction of different grades of employees to the discrete improvements in conditions showed limited variation, with pay rises proving to be the least critical factor in curbing absence.