Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Measuring workers' health and psychosocial work-environment on firm productivity
() and Pontus Roos
Abstract: We discuss a model for analyzing and measuring workers'
health and psychosocial work-environment on firm productivity. Productivity
is measured through the Malmquist productivity index approach using Data
Envelopment Analysis. A novel component of the model is that in addition to
standard quantity (or tradable) vairables, we incorporate quality (or
non-tradable) variables. Specifically we focus on two quality input
variables: workers' health status and psychosocial work-environment. The
two variables are modeled as latent or unobserved variables using Item
Response Theory. Changes over time in productivity are decomposed to asses
the contribution from the changes of the input quality variables. The model
is illustrated using data from a worksite health promotion program
conducted at three large Swedish manufacturing plants (2 paper mills, 1
steel factory) from 2000 to 2003. Over the four years we observe a general
improvement in efficiency of 2-5 %, out of which half can be attributed to
the improvement in the quality input variables.
Keywords: Productivity; Decomposition of efficiency; Human resource management; Health status; Psychosocial work-environment; Ordinal data; Latent variables; (follow links to similar papers)
JEL-Codes: D22; I10; (follow links to similar papers)
41 pages, October 4, 2012
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