Absence rates are higher in large firms. This relationship between absence and firm size could possibly be explained if large firms had smaller unit cost of absence. We show, extending a method used by Weiss, that multiple-line firms can be more efficient in insuring against absence through...

We build a model of worker interdependence in which two workers can either compete or cooperate and compare performance under either scenario to that of a single worker working in isolation. We show that whilst competition unequivocally reduces performance, cooperation may raise or lower...