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The effects of expanding the generosity of the statutory sickness insurance system

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  • Ziebarth N
  • Karlsson M

Abstract

In 1999, in Germany, the statutory sick pay level was increased from 80 to 100 percent of foregone earnings for sickness episodes of up to six weeks. We show that this reform has led to an increase in average absence days of about 10 percent or one additional day per employee, per year. The estimates are based on SOEP survey data and parametric, nonparametric, and combined matching-regression difference-in-differences methods. Extended calculations suggest that the reform might have increased labor costs by about e1.8 billion per year and might have led to the loss of around 50,000 jobs.

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Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 09/35.

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Date of creation: Dec 2009
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Handle: RePEc:yor:hectdg:09/35

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Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
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Keywords: sickness absence; statutory sick pay; natural experiment; Socio-Economic Panel Study (SOEP);

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References

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Citations

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Cited by:
  1. Nicolas R. Ziebarth, 2009. "Long-Term Absenteeism and Moral Hazard: Evidence from a Natural Experiment," Discussion Papers of DIW Berlin 888, DIW Berlin, German Institute for Economic Research.
  2. Edmundo Beteta & Manuel Willington, 2010. "Planes Mínimos Obligatorios en Mercados de Seguros de Salud Segmentados," ILADES-Georgetown University Working Papers inv251, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  3. Schneider, Julia & Beblo, Miriam, 2010. "Health at work - indicators and determinants : a revised literature and data review for Germany," IAB Discussion Paper 201017, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Johansson, Per & Karimi, Arizo & Nilsson, J Peter, 2014. "Gender differences in shirking: monitoring or social preferences? Evidence from a field experiment," Working Paper Series, Center for Labor Studies 2014:2, Uppsala University, Department of Economics.
  5. Lechmann, Daniel S. & Schnabel, Claus, 2013. "Absence from work of the self-employed: A comparison with paid employees," IWQW Discussion Paper Series 09/2013, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  6. Böckerman, Petri & Kanninen, Ohto & Suoniemi, Ilpo, 2014. "A Kink that Makes You Sick: The Incentive Effect of Sick Pay on Absence," IZA Discussion Papers 8205, Institute for the Study of Labor (IZA).
  7. Ziebarth, Nicolas R. & Karlsson, Martin, 2010. "A natural experiment on sick pay cuts, sickness absence, and labor costs," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1108-1122, December.
  8. Nicolas Ziebarth, 2014. "Assessing the effectiveness of health care cost containment measures: evidence from the market for rehabilitation care," International Journal of Health Care Finance and Economics, Springer, vol. 14(1), pages 41-67, March.
  9. Arnold, Daniel & Brändle, Tobias & Goerke, Laszlo, 2013. "Sickness Absence, Works Councils, and Personnel Problems. Evidence from German Individual and Linked Employer-Employee Data," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79906, Verein für Socialpolitik / German Economic Association.

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