Moving to Productivity

Health is a critical factor for the generation of value by workers. Companies bear substantial costs associated with absenteeism and presenteeism among their employees. This study investigates the impact of the environmental conditions in the workplace on the health and job satisfaction of employees, as core factors of productivity. We provide quasi-experimental evidence based on the relocation of 70% of the workforce of a municipality in the south of the Netherlands. We constructed a longitudinal dataset based on individual surveys of the entire municipality workforce and include measures before and after the move. The estimation results show a significant improvement in the perceived environmental conditions and health of the relocated workers. The relocation effects remain persistent in the medium term (two years after the moving date). The results from the heterogeneity analysis show the older groups of employees enjoyed larger health impacts.