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Positive Health Externalities of Mandating Paid Sick Leave

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  • Pichler, Stefan

    (University of Groningen)

  • Wen, Katherine

    (Cornell University)

  • Ziebarth, Nicolas R.

    (ZEW)

Abstract

A growing economic literature studies the optimal design of social insurance systems and the empirical identification of welfare-relevant externalities. In this paper, we test whether mandating employee access to paid sick leave has reduced influenza-like-illness (ILI) transmission rates as well as pneumonia and influenza (P&I) mortality rates in the United States. Using uniquely compiled data from administrative sources at the state-week level from 2010 to 2018 along with difference-in-differences methods, we present quasi-experimental evidence that sick pay mandates have causally reduced doctor-certified ILI rates at the population level. On average, ILI rates fell by about 11 percent or 290 ILI cases per 100,000 patients per week in the first year.

Suggested Citation

  • Pichler, Stefan & Wen, Katherine & Ziebarth, Nicolas R., 2020. "Positive Health Externalities of Mandating Paid Sick Leave," IZA Discussion Papers 13530, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13530
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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," CEPR Discussion Papers 16104, C.E.P.R. Discussion Papers.
    2. Slusky, David J.G. & Zeckhauser, Richard J., 2021. "Sunlight and Protection Against Influenza," Economics & Human Biology, Elsevier, vol. 40(C).
    3. 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).
    4. Krista Ruffini & Aaron Sojourner & Abigail Wozniak, 2021. "Who'S In And Who'S Out Under Workplace Covid Symptom Screening?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(2), pages 614-641, March.
    5. Dhaval Dave & Andrew I. Friedson & Kyutaro Matsuzawa & Joseph J. Sabia, 2021. "When Do Shelter‐In‐Place Orders Fight Covid‐19 Best? Policy Heterogeneity Across States And Adoption Time," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 29-52, January.
    6. Heather Kolakowski & Mardelle McCuskey Shepley & Ellie Valenzuela-Mendoza & Nicolas R. Ziebarth, 2021. "How the COVID-19 Pandemic Will Change Workplaces, Healthcare Markets and Healthy Living: An Overview and Assessment," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    7. David Turner & Balázs Égert & Yvan Guillemette & Jarmila Botev, 2021. "The tortoise and the hare: The race between vaccine rollout and new COVID variants," OECD Economics Department Working Papers 1672, OECD Publishing.
    8. Barton Willage & Marisa Carlos & Kevin Callison, 2023. "Non‐monetary obstacles to medical care: Evidence from postpartum contraceptives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 1045-1064, September.
    9. Michelle M. Miller, 2022. "The impact of paid sick leave laws on consumer and business bankruptcies," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 19(4), pages 844-896, December.
    10. Martin Andersen & Johanna Catherine Maclean & Michael F. Pesko & Kosali I. Simon, 2020. "Paid sick-leave and physical mobility: Evidence from the United States during a pandemic," NBER Working Papers 27138, National Bureau of Economic Research, Inc.
    11. Connor, Jade & Madhavan, Sarina & Mokashi, Mugdha & Amanuel, Hanna & Johnson, Natasha R. & Pace, Lydia E. & Bartz, Deborah, 2020. "Health risks and outcomes that disproportionately affect women during the Covid-19 pandemic: A review," Social Science & Medicine, Elsevier, vol. 266(C).
    12. Martin Lange & Ole Monscheuer, 2022. "Spreading the disease: Protest in times of pandemics," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2664-2679, December.
    13. Martin Andersen & Johanna Catherine Maclean & Michael F. Pesko & Kosali Simon, 2023. "Does paid sick leave encourage staying at home? Evidence from the United States during a pandemic," Health Economics, John Wiley & Sons, Ltd., vol. 32(6), pages 1256-1283, June.
    14. Johanna Catherine Maclean & Ioana Popovici & Christopher J. Ruhm, 2023. "Does Paid Sick Leave Facilitate Reproductive Choice?," NBER Working Papers 31801, National Bureau of Economic Research, Inc.
    15. Chen , Liming & Raitzer, David & Hasan, Rana & Lavado, Rouselle & Velarde , Orlee, 2020. "What Works to Control COVID-19?: Econometric Analysis of a Cross-Country Panel," ADB Economics Working Paper Series 625, Asian Development Bank.

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    More about this item

    Keywords

    negative externalities; sick pay mandates; population health; flu infection;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • 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
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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