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Absenteeism In The Italian Public Sector: The Effects Of Changes In Sick Leave Compensation

Author

Listed:
  • Maria De Paola

    ()

  • Valeria Pupo

    ()

  • Vincenzo Scoppa

    () (Dipartimento di Economia e Statistica, Università della Calabria)

Abstract

In this paper we analyse how the absence behaviour of Italian public sector employees has been affected by a law, passed in June 2008, reducing sick leave compensation and increasing monitoring intensity. We use micro-data on a sample of about 860 workers, employed at an Italian public administration, for years going from 2005 to 2009. We estimate the effect of the reform using linear and non-linear estimators. As predicted by agency theory, individuals react to economic incentives: the employees in our sample have considerably reduced their absences under the new regime. Since the reform has affected employees in a non uniform way, we show that the reduction of absenteeism is significantly stronger for employees suffering higher earning losses. Results also show that while the reform has reduced the duration of short absence spells, the duration of long spells has increased. We argue that this is due to the non-linearity of earning losses introduced by the new law.

Suggested Citation

  • Maria De Paola & Valeria Pupo & Vincenzo Scoppa, 2009. "Absenteeism In The Italian Public Sector: The Effects Of Changes In Sick Leave Compensation," Working Papers 200916, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
  • Handle: RePEc:clb:wpaper:200916
    as

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    File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP16_2009.pdf
    File Function: First version, 2009-10
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    References listed on IDEAS

    as
    1. Riphahn, Regina T. & Thalmaier, Anja, 1999. "Behavioral Effects of Probation Periods: An Analysis of Worker Absenteeism," IZA Discussion Papers 67, Institute for the Study of Labor (IZA).
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    3. Johansson, Per & Palme, Marten, 1996. "Do economic incentives affect work absence? Empirical evidence using Swedish micro data," Journal of Public Economics, Elsevier, vol. 59(2), pages 195-218, February.
    4. Scoppa, Vincenzo, 2010. "Shirking and employment protection legislation: Evidence from a natural experiment," Economics Letters, Elsevier, vol. 107(2), pages 276-280, May.
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    Citations

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    Cited by:

    1. Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2014. "In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno," FBK-IRVAPP Working Papers 2014-04, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    2. Edmundo Beteta & Manuel Willington, 2009. "Planes Mínimos Obligatorios en Mercados de Seguros de Salud Segmentados," Estudios de Economia, University of Chile, Department of Economics, vol. 36(2 Year 20), pages 217-241, December.
    3. De Paola, Maria, 2010. "Absenteeism and peer interaction effects: Evidence from an Italian Public Institute," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 420-428, June.
    4. Filip Pertold, 2015. "What if they take it all? Impact of zero replacement rates on sickness absence," Discussion Papers 35, Central European Labour Studies Institute (CELSI).
    5. Alessandra Del Boca & Maria Laura Parisi, 2010. "Why does the private sector react like the public to law 133? A microeconometric analysis of sickness absence in Italy," Working Papers 1008, University of Brescia, Department of Economics.
    6. Francesco D'Amuri, 2011. "Monetary incentives vs. monitoring in addressing absenteeism: experimental evidence," Temi di discussione (Economic working papers) 787, Bank of Italy, Economic Research and International Relations Area.
    7. D'Amuri, Francesco, 2011. "Monitoring and monetary incentives in addressing absenteeism: evidence from a sequence of policy changes," ISER Working Paper Series 2011-10, Institute for Social and Economic Research.

    More about this item

    Keywords

    Worker Absenteeism; Moral Hazard; Shirking; Sickness; Insurance Contracts;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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