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Title:Do financial bonuses to employees reduce their absenteeism? Outcome of a lottery PDF Logo
Authors:Hassink, Wolter H.J.
Koning, Pierre
Issue Date:2005
Series/Report no.:IZA Discussion Papers 1644
Abstract:This paper investigates the effectiveness of a monthly lottery in reducing sick leave among workers in a manufacturing firm. Conditions of participation are not having reported sick in the previous three months and not having won the lottery earlier. It turns out that the lottery results in a decrease in the rate of sick leave of 1.6 percentage point. From the perspective of the firm, the lottery is found to be highly beneficial that is, the benefits associated with the decrease in the sick leave rate exceed the costs of the lottery. Workers seem to be primarily driven by the first upcoming lottery. After winning the lottery, winners resume their previous (rate of) absence.
Subjects:absenteeism
sick leave
incentives
lottery
JEL:J22
J32
M52
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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