The below information contains the factors that influences absenteeism in the workplace that we are dealing with in this practical. The regression standard format that we will also provide with these factors helps us to understand technically these factors and to make a clear meaning of these factors economically. The randomly selected sample of 100 (one hundred) companies are going to help us to save time and money to actually use it as an estimate for the entire companies (population). This is the estimate of a regression model to examine the factors that influence employee absenteeism. The data was collected from 100 randomly selected companies. The key definitions are as follows. Y = Average number of days absent per employee, X2 = Average employee wage, X3 = percentage of part time employees in a company, X4 = percentage of unionized employees in a company, D5 = 1 if shift work is available in a company (= 0 if it there is no shift work), D6 = 1 if union management relationship is good (=0 if it is not) The regression standard format that helps us understand the above data economically is as follows. Y = ß1 + ß2 X2+ ß3 X3 + ß4 X4+ ß 5D5+ ß6 D6 +ui
Towards the end of this report we shall see the effectiveness of this regression standard format. This standard format will work more effectively on the interpretation of the regression analysis. For now we are going to concentrate on Descriptive statistics. We firstly start with the interpretation of our scatterplots that we have generated from the observation of the factors of absenteeism. For a good and clear interpretation these scatterplots we shall include them in the appendix. However, we will briefly interpret their meaning in the body of this report. Literature review on the economics of absenteeism
There are a lot of factors that influence absenteeism in the workplace, could it be the treatment they get from their bosses, the wages they get paid and the general atmosphere at work. In this report based on the practical that we have done we will show some of the factors that contribute to absenteeism in the workplace. Amongst many things that could make people be absent from their works the wages and treatment in the workplace are the leading factors. When employees are paid higher they actually act in two different ways. It depends on how they are attached/love or how demanding their work is and sometimes the unions protection to employees is the other factor that contributes to the actions that employees take when paid higher. So other employees demand more working hours because an increased payment is an incentive to work harder to earn even more than they are currently. To those people who act in that manner they treat leisure as an inferior good. If leisure is an inferior good, employees consumes less of it as wages increase. The substitution and an income effect move to the same direction. As a result, if leisure is an inferior good, a wage increase unambiguously causes the hours worked to rise. This then leads to less or decreased absenteeism in the workplace. However, if leisure is a normal good, when wages rises or when unions install more of the regulations to protect employees, employees consume more leisure. The substitution and income effect work towards the opposite directions. So as wages rises, less hours are worked and more leisure is consumed and therefore the labour supply curve is backward bending. This then mean that more employees becomes absent at work. So when there is an increased volume of absenteeism in the workplace the outputs produces decreases and the economy contract. Absenteeism is also seasonal as well. During the times of Christmas on December the companies loses millions of rands through absenteeism because people are going away to holidays then when there are few workers, the outputs produced is also decreased. A study from the Confederation of British Industry (CBI) reckons that absence from work, for whatever...
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