In Italy, employees are fully insured against earning losses due to illness. Since worker's health is not easily verifiable, absenteeism due to illness is considered an empirical proxy for employee shirking. The Bank of Italy Household Survey (SHIW) provides individual data on days of absence. Contr
Incentives and selection in cyclical absenteeism
β Scribed by Mahmood Arai; Peter Skogman Thoursie
- Book ID
- 116714201
- Publisher
- Elsevier Science
- Year
- 2005
- Tongue
- English
- Weight
- 122 KB
- Volume
- 12
- Category
- Article
- ISSN
- 0927-5371
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## Abstract We extend the __strategic contract model__ where the owner designs incentive schemes for her manager before the latter takes output decisions. Firstly, we introduce private knowledge regarding costs __within__ each ownerβmanager pair. Under adverse selection, we show that delegation inv