DP2387 Work Environment And Individual Background: Explaining Regional Shirking Differentials In A Large Italian Firm

Author(s): Andrea Ichino, Giovanni Maggi
Publication Date: February 2000
Keyword(s): Group Interaction Effects, Regional Differentials, Shirking
JEL(s): J20, K40
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2387

The prevalence of shirking within a large Italian bank appears to be characterized by significant regional differentials. In particular, absenteeism and misconduct episodes are substantially more prevalent in the south. We consider a number of potential explanations for this fact: different individual backgrounds; group-interaction effects; sorting of workers across regions; differences in local attributes; different hiring policies and discrimination against southern workers. Our analysis suggests that individual backgrounds, group-interaction effects and sorting effects contribute to explain the north-south shirking differential. None of the other explanations appears to be of first-order importance.