The cost of sickness: On the effect of the duration of sick leave on post-sick leave earnings
AbstractStudies analysing the effect of the duration of sick leave on subsequent labour market outcomes do not consider the potential endogenous relationship between duration and labour market outcomes. This paper deals with this shortcoming by using a consistent estimator attained through Instrumental Variables methods for estimating the effect of the duration of a sick leave spell on post-sick leave earnings. I use Danish administrative data and a major 2001 reform of the sick leave system as the instrument for duration. I find that the duration of a sick leave spell has both short and long term effects on post-sick leave earnings.
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Bibliographic InfoArticle provided by Elsevier in its journal Social Science & Medicine.
Volume (Year): 70 (2010)
Issue (Month): 10 (May)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/315/description#description
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- Laszlo Goerke & Markus Pannenberg, 2012.
"Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform,"
IAAEU Discussion Papers
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- Laszlo Goerke & Markus Pannenberg, 2012. "Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform," SOEPpapers on Multidisciplinary Panel Data Research 470, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Laszlo Goerke & Markus Pannenberg, 2012. "Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform," CESifo Working Paper Series 3909, CESifo Group Munich.
- Goerke, Laszlo & Pannenberg, Markus, 2012. "Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform," IZA Discussion Papers 6777, Institute for the Study of Labor (IZA).
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