A number of researchers have endeavoured for the incorporation of considerations regarding labour demand. According to the theoretical model of absenteeism by Allen (1981), absenteeism is treated as a non- pecuniary attribute related to the package of compensation by the development of hedonic framework (Allen 1981a). The offer function has been derived by Allen regarding an employer indicating the combined rates of absence and wage within the willingness of provision at a specific amount of profit. Provided that each and every employer is categorized by such a curve of offer, the enveloped of each and every curve will help in yielding the trade- off between absence and wages in existence across the market (Allen 1981b). In the similar sense, a family regarding the curves of indifference represents the preferences between absence and wages can be derived out of each and every individual, who will be choosing the employer such that there is a tangent curve of indifference to the envelope regarding the offer curves of every employer. Provided that absence is an agreeable attribute of job, the model helps in predicting the inverse relationship between absence and wage rates. Even though the hedonic approach seems to be incorporating both, the considerations of labour supply and labour demand, it is disappointing to state that there has been failure of subsequent authors for following the lead of Allen (Blundell and Walker 2003).