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The Effects of Sick-Leaves on Earnings

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Author Info

  • Markussen, Simen

    (Ragnar Frisch Centre for Economic Research)

Abstract

This paper assesses the causal effect of sick-leaves on subsequent earnings using an administrative dataset for Norway linking individual earnings, sick-leave records and primary care physicians. The leniency of a worker's physician - certifying sickness absence - is used as instrument for sick-leaves. Sick-leaves have a substantial impact on future earnings, reducing earnings by .3 percent per day of absence. When conditioning on full-time employment also two years after sickness the effect is .06 percent per day of absence. These effects are persistent over time and work mainly through wages not hours.

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File URL: http://www.sv.uio.no/econ/english/research/memorandum/pdf-files/2009/Memo-20-2009.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 20/2009.

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Length: 42 pages
Date of creation: 30 Jun 2009
Date of revision:
Handle: RePEc:hhs:osloec:2009_020

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
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Related research

Keywords: sickness absence; wage formation; IV estimation; wage regression;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Effects of Sick-Leaves on Earnings
    by Ariel Goldring in Free Market Mojo on 2010-02-26 16:39:18
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Cited by:
  1. Markussen, Simen & Røed, Knut & Røgeberg, Ole J., 2013. "The Changing of the Guards: Can Physicians Contain Social Insurance Costs?," IZA Discussion Papers 7122, Institute for the Study of Labor (IZA).
  2. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2010. "The Case for Presenteeism," IZA Discussion Papers 5343, Institute for the Study of Labor (IZA).

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