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The Effects of Sick-Leaves on Earnings

Author

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  • Markussen, Simen

    (Ragnar Frisch Centre for Economic Research)

Abstract

This paper assesses the causal effect of sick-leaves on subsequent earnings using an administrative dataset for Norway linking individual earnings, sick-leave records and primary care physicians. The leniency of a worker's physician - certifying sickness absence - is used as instrument for sick-leaves. Sick-leaves have a substantial impact on future earnings, reducing earnings by .3 percent per day of absence. When conditioning on full-time employment also two years after sickness the effect is .06 percent per day of absence. These effects are persistent over time and work mainly through wages not hours.

Suggested Citation

  • Markussen, Simen, 2009. "The Effects of Sick-Leaves on Earnings," Memorandum 20/2009, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2009_020
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2009/Memo-20-2009.pdf
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    References listed on IDEAS

    as
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    7. Hesselius, Patrik, 2007. "Does sickness absence increase the risk of unemployment?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 288-310, April.
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    15. Carlsen, Benedicte & Nyborg, Karine, 2009. "The Gate is Open: Primary Care Physicians as Social Security Gatekeepers," Memorandum 07/2009, Oslo University, Department of Economics.
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    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Effects of Sick-Leaves on Earnings
      by Ariel Goldring in Free Market Mojo on 2010-02-26 22:39:18

    Citations

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    Cited by:

    1. Markussen, Simen & Røed, Knut & Røgeberg, Ole, 2013. "The changing of the guards," Journal of Health Economics, Elsevier, vol. 32(6), pages 1230-1239.
    2. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2010. "The Case for Presenteeism," IZA Discussion Papers 5343, Institute of Labor Economics (IZA).
    3. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2012. "The case for presenteeism — Evidence from Norway's sickness insurance program," Journal of Public Economics, Elsevier, vol. 96(11), pages 959-972.
    4. Markussen, Simen & Røed, Knut & Røgeberg, Ole J., 2013. "The Changing of the Guards: Can Physicians Contain Social Insurance Costs?," IZA Discussion Papers 7122, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    sickness absence; wage formation; IV estimation; wage regression;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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