Do Financial Bonuses to Employees Reduce their Absenteeism? Outcome of a Lottery

W.H.J. Hassink, P. Koning

Research output: Working paperAcademic

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.
Original languageEnglish
Place of PublicationUtrecht
PublisherUU USE Tjalling C. Koopmans Research Institute
Number of pages34
Publication statusPublished - Jun 2005

Publication series

NameDiscussion Paper Series / Tjalling C. Koopmans Research Institute
No.27
Volume05
ISSN (Electronic)2666-8238

Keywords

  • absenteeism
  • sick leave
  • incentives
  • lottery

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