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If sick-leave becomes more costly, will I go back to work? Could it be too soon?

Author

Listed:
  • Olivier Marie

    (Erasmus University Rotterdam, ROA, TI, IZA, CEPR, CEP, and CESIfo)

  • Judit Vall Castello

    (Universitat de Barcelona, IEB and CRES-UPF)

Abstract

We investigate the impact on work absence of a massive reduction in paid sick leave benefits. We exploit a policy change that only affected public sector workers in Spain and compare changes in the number and length of spells they take relative to unaffected private sector workers. Our results highlight a large drop in frequency mostly offset by increases in average duration. Overall, the policy did reduce number of days lost to sick leave. For some, return to work may have been premature as we document very large increases in both the proportion of relapses and the working accidents rate.

Suggested Citation

  • Olivier Marie & Judit Vall Castello, 2020. "If sick-leave becomes more costly, will I go back to work? Could it be too soon?," Working Papers 2020/09, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2020-09
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    File URL: https://ieb.ub.edu/en/publication/2020-09-if-sick-leave-becomes-more-costly-will-i-go-back-to-work-could-it-be-too-soon/
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    Cited by:

    1. Boeri, Tito & di Porto, Edoardo & Naticchioni, Paolo & Scrutinio, Vincenzo, 2021. "Friday Morning Fever. Evidence from a Randomized Experiment on Sick Leave Monitoring in the Public Sector," IZA Discussion Papers 14346, Institute of Labor Economics (IZA).
    2. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2023. "The value of sick pay," European Economic Review, Elsevier, vol. 151(C).
    3. Abi Adams‐Prassl & Teodora Boneva & Marta Golin & Christopher Rauh, 2020. "Furloughing," Fiscal Studies, John Wiley & Sons, vol. 41(3), pages 591-622, September.
    4. Maclean, J. Catherine & Pichler, Stefan & Ziebarth, Nicolas R., 2020. "Mandated Sick Pay: Coverage, Utilization, and Welfare Effects," IZA Discussion Papers 13132, Institute of Labor Economics (IZA).
    5. Kwo, Junghyun, 2022. "Building a new safety net for sick workers," KDI Focus 113, Korea Development Institute (KDI).

    More about this item

    Keywords

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    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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