STICERD Work in Progress Seminars
Absenteeism and Productivity: Evidence from Indian Firms
Giulia Zane (STICERD, London School of Economics)
Friday 06 March 2015 13:00 - 14:00
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About this event
High absence rates are an important issue for formal manufacturing firms in India. Every year, almost 9% of working days are lost because of worker absence. The objective of this work is to estimate the impact of absenteeism on firms' productivity. I exploit the fact that workers are more likely to be absent if they have a better outside option in the agricultural sector. In particular, shocks to agricultural productivity (such as rainfall and temperature) provide a source of exogenous variation that can be used to estimate the causal effect of absenteeism on productivity.