Friction Costs and the Chain of Vacancies Problem: A Novel Vacancy Multiplier Solution

A key criticism of applying the friction cost approach (FCA) to productivity cost estimation is its focus on a single friction period. A more accurate estimate of the friction cost of worker absence requires consideration of the chain of secondary vacancies arising from the opening of a new primary vacancy. Currently, empirical evidence on this is almost absent. We suggest an original approach to empirically estimate productivity costs that include a chain of secondary vacancies.

Source: Value in Health - December 22, 2020 Category: International Medicine & Public Health Authors: Paul Hanly, Marta Ortega-Ortega, Linda Sharp Source Type: research