Nurse Absenteeism and Benefit Generosity: Evidence from Canada *

Abstract

This paper uses a benefit index based on collective agreements in each Canadian province to understand the effects employee contracts have on absenteeism of full-time nurses. In particular, I estimate the impact of this benefit index on the number of hours nurses take off in a reference week. Month and year dummy variables, as well as nurses’ individual and work-related characteristics, are included in both ordinary least squares and two-part model regressions. My main finding implies full-time nurses in the most generous collective agreement show a nineteen percent increase in the number of hours taken off work in comparison to the least generous collective agreement. This study illustrates how the generosity of benefits in collective agreements varies the rate of absenteeism and highlights that employees and employers still have gains to be made from readjusting employee contracts