We argue that firms with interdependent worker productivity, team production, have ahigher cost of absence and as a consequence will spend additional resources onmonitoring absence. As a result, firms with team production should have lower absencerates, all else equal. We estimate the determinants of absence for blue-collar workersusing a sample of German manufacturing establishments. The presence of work placeteams is argued to be a proxy for establishments with team production. The estimatesreveal that firms with teams have lower absence rates, as do firms with small shares ofwomen and smaller establishments. The size effect is, however, unique to establishmentswith teams which fits prior theoretical work but which has not been previously tested.
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