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Sick Leave Cuts and (Unhealthy) Returns to Work

Author

Listed:
  • Olivier Marie
  • Judit Vall Castelló

Abstract

We investigate the impact on work absences of a large reduction in paid sick leave benefits in Spain. Our results highlight substantial decreases in frequency (number of spells) mostly offset by increases in duration (length of spells). Overall, the policy did reduce the number of days lost to sick leave. For some, however, return to work was premature, as we document large increases in both the proportion of relapses and the number of working accidents. Displacement toward this unaffected benefit scheme cancels out almost two-fifths of the gains in terms of estimated absence reductions from the sick leave benefit cut.

Suggested Citation

  • Olivier Marie & Judit Vall Castelló, 2023. "Sick Leave Cuts and (Unhealthy) Returns to Work," Journal of Labor Economics, University of Chicago Press, vol. 41(4), pages 923-956.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/720629
    DOI: 10.1086/720629
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    Citations

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    Cited by:

    1. Christopher J. Cronin & Matthew C. Harris & Nicolas R. Ziebarth, 2022. "The Anatomy of U.S. Sick Leave Schemes: Evidence from Public School Teachers," NBER Working Papers 29956, National Bureau of Economic Research, Inc.
    2. Grace Armijos Bravo & Judit Vall Castelló, 2025. "Job competition in civil service public exams and sick leave behaviour," Fiscal Studies, John Wiley & Sons, vol. 46(1), pages 91-123, March.
    3. Blanchard, Pablo & Burdin, Gabriel & Dean, Andrés, 2025. "Property rights, sick pay and effort supply," Journal of Development Economics, Elsevier, vol. 177(C).
    4. Cronin, C.J.; & Harris, M. C.; & Ziebarth, N. R.;, 2024. "The Anatomy of U.S. Sick Leave Schemes:Evidence from Public School Teachers," Health, Econometrics and Data Group (HEDG) Working Papers 24/10, HEDG, c/o Department of Economics, University of York.
    5. Guida Ayza Estopa, 2024. "Return-to-work policies for disability insurance recipients: The role of financial incentives," French Stata Users' Group Meetings 2024 17, Stata Users Group.
    6. Ángel L. Martín-Román & Alfonso Moral & Sara Pinillos-Franco, 2024. "Are women breaking the glass ceiling? A gendered analysis of the duration of sick leave in Spain," International Journal of Health Economics and Management, Springer, vol. 24(1), pages 107-134, March.
    7. Kakoulidou, Theoni & Doolan, Michael & Roantree, Barra, 2022. "Earnings-related benefits in Ireland: Rationale, costs and work incentives," Papers BP2023/2, Economic and Social Research Institute (ESRI).
    8. Pichler, Stefan & Ziebarth, Nicolas R., 2024. "Sick Leave and Medical Leave in the United States: A Categorization and Recent Trends," IZA Policy Papers 206, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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