IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v103y2025ics0167629625000827.html

Intergenerational effects of sick leave on child human capital

Author

Listed:
  • Riise, Julie
  • Willage, Barton
  • Willén, Alexander

Abstract

This paper examines the intergenerational consequences of parental participation in government social insurance programs, using one of the largest social insurance programs in the world: sick leave. We exploit quasi-random assignment of patients to general practitioners (GPs) in Norway, who vary in their propensity to certify sick leave of different lengths, to estimate the effects of access to longer sick leave for the marginal individual. Linking administrative data on patients and their children, we show that assignment to a more lenient GP lowers children’s GPA in adolescence, reduces the likelihood of completing upper secondary education, and decreases enrollment in higher education. These effects appear to operate through changes in parental trajectories: more sick leave leads to lower long-term earnings, greater reliance on welfare, and deterioration in mental health.

Suggested Citation

  • Riise, Julie & Willage, Barton & Willén, Alexander, 2025. "Intergenerational effects of sick leave on child human capital," Journal of Health Economics, Elsevier, vol. 103(C).
  • Handle: RePEc:eee:jhecon:v:103:y:2025:i:c:s0167629625000827
    DOI: 10.1016/j.jhealeco.2025.103047
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167629625000827
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jhealeco.2025.103047?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Judd B. Kessler & Corinne Low & Colin D. Sullivan, 2019. "Incentivized Resume Rating: Eliciting Employer Preferences without Deception," American Economic Review, American Economic Association, vol. 109(11), pages 3713-3744, November.
    2. Anna Aizer & Hilary W. Hoynes & Adriana Lleras-Muney, 2022. "Children and the US Social Safety Net: Balancing Disincentives for Adults and Benefits for Children," NBER Working Papers 29754, National Bureau of Economic Research, Inc.
    3. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    4. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    5. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 12, pages 697-812, Elsevier.
    6. Nicolas R. Ziebarth & Martin Karlsson, 2014. "The Effects Of Expanding The Generosity Of The Statutory Sickness Insurance System," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(2), pages 208-230, March.
    7. Gordon B. Dahl & Andreas Ravndal Kostøl & Magne Mogstad, 2014. "Family Welfare Cultures," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1711-1752.
    8. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    9. Robert Paul Hartley & Carlos Lamarche & James P. Ziliak, 2022. "Welfare Reform and the Intergenerational Transmission of Dependence," Journal of Political Economy, University of Chicago Press, vol. 130(3), pages 523-565.
    10. Sadegh Eshaghnia & James J. Heckman & Rasmus Landersø & Rafeh Qureshi, 2022. "Intergenerational Transmission of Family Influence," NBER Working Papers 30412, National Bureau of Economic Research, Inc.
    11. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers II: Teacher Value-Added and Student Outcomes in Adulthood," American Economic Review, American Economic Association, vol. 104(9), pages 2633-2679, September.
    12. Julian Vedeler Johnsen & Kjell Vaage & Alexander Willén, 2022. "Interactions in Public Policies: Spousal Responses and Program Spillovers of Welfare Reforms," The Economic Journal, Royal Economic Society, vol. 132(642), pages 834-864.
    13. Willage, Barton & Willén, Alexander, 2022. "Postpartum Job Loss: Transitory Effect on Mothers, Long-run Damage to Children," European Economic Review, Elsevier, vol. 150(C).
    14. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    15. Carneiro, Pedro & Salvanes, Kjell G. & Willage, Barton & Willén, Alexander, 2022. "The Timing of Parental Job Displacement, Child Development and Family Adjustment," Discussion Paper Series in Economics 12/2022, Norwegian School of Economics, Department of Economics.
    16. Anna Aizer & Hilary Hoynes & Adriana Lleras-Muney, 2022. "Children and the US Social Safety Net: Balancing Disincentives for Adults and Benefits for Children," Journal of Economic Perspectives, American Economic Association, vol. 36(2), pages 149-174, Spring.
    17. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates," American Economic Review, American Economic Association, vol. 104(9), pages 2593-2632, September.
    18. Eric Knudsen & James J. Heckman & Judy Cameron & Jack P. Shonkoff, 2006. "Economic, Neurobiological and Behavioral Perspectives on Building America's Future Workforce," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(3), pages 17-41, July.
    19. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, IZA Network @ LISER.
    20. Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1287-1306, October.
    21. Jonas Tungodden & Alexander Willén, 2023. "When Parents Decide: Gender Differences in Competitiveness," Journal of Political Economy, University of Chicago Press, vol. 131(3), pages 751-801.
    22. Sadegh Eshaghnia & James J. Heckman, 2023. "Intergenerational Transmission of Inequality: Maternal Endowments, Investments, and Birth Outcomes," NBER Working Papers 31761, National Bureau of Economic Research, Inc.
    23. James J. Heckman, 2007. "The Economics, Technology and Neuroscience of Human Capability Formation," NBER Working Papers 13195, National Bureau of Economic Research, Inc.
    24. Krueger, Alan B & Whitmore, Diane M, 2001. "The Effect of Attending a Small Class in the Early Grades on College-Test Taking and Middle School Test Results: Evidence from Project STAR," Economic Journal, Royal Economic Society, vol. 111(468), pages 1-28, January.
    25. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    26. Julie Riise & Barton Willage & Alexander Willen, 2022. "Can Female Doctors Cure the Gender STEMM Gap? Evidence from Exogenously Assigned General Practitioners," The Review of Economics and Statistics, MIT Press, vol. 104(4), pages 621-635, October.
    27. Kuhn, Andreas & Lalive, Rafael & Zweimüller, Josef, 2009. "The public health costs of job loss," Journal of Health Economics, Elsevier, vol. 28(6), pages 1099-1115, December.
    28. Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2013. "Does Disability Insurance Receipt Discourage Work? Using Examiner Assignment to Estimate Causal Effects of SSDI Receipt," American Economic Review, American Economic Association, vol. 103(5), pages 1797-1829, August.
    29. Manudeep Bhuller & Gordon B. Dahl & Katrine V. Loken & Magne Mogstad, 2018. "Intergenerational Effects of Incarceration," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 234-240, May.
    30. Will Dobbie & Jacob Goldin & Crystal S. Yang, 2018. "The Effects of Pretrial Detention on Conviction, Future Crime, and Employment: Evidence from Randomly Assigned Judges," American Economic Review, American Economic Association, vol. 108(2), pages 201-240, February.
    31. Matthias Doepke & Fabrizio Zilibotti, 2017. "Parenting With Style: Altruism and Paternalism in Intergenerational Preference Transmission," Econometrica, Econometric Society, vol. 85, pages 1331-1371, September.
    32. Pedro Carneiro & Italo López García & Kjell G. Salvanes & Emma Tominey, 2021. "Intergenerational Mobility and the Timing of Parental Income," Journal of Political Economy, University of Chicago Press, vol. 129(3), pages 757-788.
    33. Gordon B. Dahl & Anne C. Gielen, 2021. "Intergenerational Spillovers in Disability Insurance," American Economic Journal: Applied Economics, American Economic Association, vol. 13(2), pages 116-150, April.
    34. C. Kirabo Jackson & Shanette C. Porter & John Q. Easton & Alyssa Blanchard & Sebastián Kiguel, 2020. "School Effects on Socioemotional Development, School-Based Arrests, and Educational Attainment," American Economic Review: Insights, American Economic Association, vol. 2(4), pages 491-508, December.
    35. Godøy, Anna & Dale-Olsen, Harald, 2018. "Spillovers from gatekeeping – Peer effects in absenteeism," Journal of Public Economics, Elsevier, vol. 167(C), pages 190-204.
    36. Markussen, Simen & Røed, Knut, 2017. "The market for paid sick leave," Journal of Health Economics, Elsevier, vol. 55(C), pages 244-261.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Willén, Alexander & Willage, Barton & Riise, Julie, 2022. "Employment Protection and Child Development," Discussion Paper Series in Economics 19/2022, Norwegian School of Economics, Department of Economics.
    2. Pedro Carneiro & Kjell Salvanes & Barton Willage & Alexander Willén, 2023. "Childhood Shocks Across Ages and Human Capital Formation," Working Papers 2023-018, Human Capital and Economic Opportunity Working Group.
    3. Shanan, Yannay, 2024. "The intergenerational effects of welfare transfers among single mothers: Evidence from an Israeli welfare reform," Journal of Public Economics, Elsevier, vol. 237(C).
    4. Carneiro, Pedro & Salvanes, Kjell G. & Willage, Barton & Willén, Alexander, 2022. "The Timing of Parental Job Displacement, Child Development and Family Adjustment," IZA Discussion Papers 15630, IZA Network @ LISER.
    5. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    6. Barbara Broadway & Tessa LoRiggio & Chris Ryan & Anna Zhu, 2022. "Literature review on the impact of welfare policy design on children and youth," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 809-840, September.
    7. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    8. Xu, Hui & Zhang, Zheyuan & Zhao, Zhong, 2023. "Parental socioeconomic status and children’s cognitive ability in China," Journal of Asian Economics, Elsevier, vol. 84(C).
    9. Wang, Dongqin & Shen, Minghong & Wu, Xiaogang, 2026. "Socioeconomic status and inequalities in early development of non-cognitive skills: Evidence from China," China Economic Review, Elsevier, vol. 95(C).
    10. Pichler, Stefan & Ziebarth, Nicolas R., 2024. "Sick leave and medical leave in the United States: A categorization and recent trends," ZEW Discussion Papers 24-011, ZEW - Leibniz Centre for European Economic Research.
    11. Manasi Deshpande & Rebecca Dizon-Ross, 2023. "The (Lack of) Anticipatory Effects of the Social Safety Net on Human Capital Investment," NBER Working Papers 31512, National Bureau of Economic Research, Inc.
    12. Naomi Gershoni & Rania Gihleb & Assaf Kott & Hani Mansour & Yannay Shanan, 2025. "Adjustments to Reduced Cash Transfers: Religious Safety Nets and Children's Long-Term Outcomes," CESifo Working Paper Series 11856, CESifo.
    13. Moroni, Gloria & Nicoletti, Cheti & Tominey, Emma, 2019. "Child Socio-Emotional Skills: The Role of Parental Inputs," IZA Discussion Papers 12432, IZA Network @ LISER.
    14. Marte E. S. Ulvestad & Simen Markussen, 2023. "Born or bred? The roles of nature and nurture for intergenerational persistence in labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 1005-1047, April.
    15. Larissa Zierow, 2017. "Economic Perspectives on the Implications of Public Child Care and Schooling for Educational Outcomes in Childhood and Adult Life," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 76, April.
    16. Jan Stuhler, 2018. "A Review of Intergenerational Mobility and its Drivers," JRC Research Reports JRC112247, Joint Research Centre.
    17. Sergi Sánchez-Coll, 2023. "Born this way: the effect of an unexpected child benefit at birth on longer-term educational outcomes," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 14(1), pages 105-141, March.
    18. Maclean, J. Catherine & Pichler, Stefan & Ziebarth, Nicolas R., 2020. "Mandated Sick Pay: Coverage, Utilization, and Welfare Effects," IZA Discussion Papers 13132, IZA Network @ LISER.
    19. Gabriela Galassi & David Koll & Lukas Mayr, 2019. "The Intergenerational Correlation of Employment: Is There a Role for Work Culture?," Staff Working Papers 19-33, Bank of Canada.
    20. Lindsey Macmillan & Emma Tominey, 2023. "Parental inputs and socio-economic gaps in early child development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1513-1543, July.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:103:y:2025:i:c:s0167629625000827. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505560 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.