A simple model of the effects of unionization on absenteeism due to illness is developed and tested. It is argued that unions lower absenteeism through providing a monopoly wage, but raise it by providing liberal sick-leave benefits. Data from the Michigan Panel Study of Income Dynamics are used to test the model. In regressions which control for human capital and demographic characteristics as well as working conditions, it is found that the net effect of unionization is to encourage absence.
ASJC Scopus subject areas
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation