This research is aimed at examining the impact of tax reform on economic welfare in an environment of uncertainty in a small open economy with a regime of flexible exchange rate. It is assumed that the economy is populated by identical rational risk-averse individuals. Unlike the typical...

Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than “like” employees not exposed to HIM. These results are robust to extensive work, wage and sickness absence history controls. We present a...

The paper examines the effect of innovative work practices on the prevalence of sickness absence and accidents at work. We focus on several different aspects of workplace innovations (self-managed teams, information sharing, employer-provided training and incentive pay) along with the...

Objectives: We examine the predictors of sickness presenteeism in comparison with sickness absenteeism. The paper focuses on the effects of working-time match and efficiency demands and differentiates the estimates by a respondent’s self-assessed health. Methods: We use survey data covering...

This paper examines the relationship between alcohol consumption and sickness absence. We use regional panel data from Finland over the period 1993-2005. The data on individuals’ health that we are using originates from Health Behaviour and Health among the Finnish Population conducted by the...

We examine the effect of the replacement rule of a social insurance system on sickness absence. The elasticity of absence with respect to the benefit level is a critical parameter in defining the optimal sickness insurance scheme. A pre-determined, piecewise linear policy rule in which the...

A model is analyzed in which workers' efforts depend positively on the real wage and the unemployment rate. Due to isoelastic demand and constant marginal cost it is optimal for firms to set the output price as a fixed markup over the nominal wage. When demand shocks occur, firms' first response...

We propose a modified version of the Shapiro-Stiglitz’s (1984) efficiency wage model by introducing temporary contracts in the standard setup. New theoretical insights emerge on the incentive problem faced by workers and firms. We argue that the existence of temporary contracts broaden the...

This study demonstrates that a model with efficiency wages and imperfect information produces a Phillips curve relationship. Equations are derived for labor demand and the efficiency wage-setting condition, and shifts in these curves in response to aggregate demand shocks result in a...

This study derives a reduced-form equation for the aggregate supply curve from a model in which firms pay efficiency wages and workers have imperfect information about average wages at other firms. If specific assumptions are made about workers’ expectations of average wages and about...