The Healthy Fright of Losing a Good One for a Bad One
Abstract
In this paper we study the effect of different degrees of employment protection on absenteeism, paying attention to differences between workers moving from protected jobs to insecure jobs, on the one hand, and workers moving from insecure to secure jobs, on the other hand. Using a large representative sample of Italian workers, we show that workers' reaction in terms of sickness leave is not symmetric: losing protection (bad news) is more effective than gaining it (good news). We claim that this asymmetry is consistent with the behavior of financial markets responding to good and bad news. In our case, workers react in a more prudential way to improvements in their employment status ("wait and see" strategy), while they do immediately adjust to worsening job security by showing off healthy behavior.Download Info
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6348.Length: 18 pages
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6348
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Related research
Keywords: absenteeism; employment protection; delayed reaction;Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-HEA-2012-02-27 (Health Economics)
- NEP-LAB-2012-02-27 (Labour Economics)
- NEP-LMA-2012-02-27 (Labor Markets - Supply, Demand, & Wages)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Andrea Ichino & Gerd Muehlheusser, 2003. "How often should you open the door? Optimal monitoring to screen heterogeneous agents," Diskussionsschriften dp0319, Universitaet Bern, Departement Volkswirtschaft.
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Working Paper Series
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Vincenzo Scoppa & Daniela Vuri, 2013.
"Absenteeism, Unemployment and Employment Protection Legislation: Evidence from Italy,"
CEIS Research Paper
257, Tor Vergata University, CEIS, revised 07 Jan 2013.
- Vincenzo Scoppa & Daniela Vuri, 2012. "Absenteeism, Unemployment And Employment Protection Legislation: Evidence From Italy," Working Papers 201208, Università della Calabria, Dipartimento di Scienze Economiche, Statistiche e Finanziarie (Ex Dipartimento di Economia e Statistica).
- Scoppa, Vincenzo & Vuri, Daniela, 2012. "Absenteeism, Unemployment and Employment Protection Legislation: Evidence from Italy," IZA Discussion Papers 7091, Institute for the Study of Labor (IZA).
- Vincenzo Scoppa & Daniela Vuri, 2013. "Absenteeism, Unemployment and Employment Protection Legislation: Evidence from Italy," CESifo Working Paper Series 4064, CESifo Group Munich.
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