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Labor Market Effects of US Sick Pay Mandates

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  • Pichler, Stefan

    (University of Groningen)

  • Ziebarth, Nicolas R.

    (ZEW)

Abstract

This paper exploits temporal and spatial variation in the implementation of US sick pay mandates to assess their labor market consequences. We use the Synthetic Control Group Method (SCGM) and the Quarterly Census of Employment and Wages (QCEW) to estimate the causal effect of mandated sick leave on employment and wages. Our findings do not provide much evidence that employment or wages were significantly affected by the mandates which typically allow employees to earn one hour of paid sick leave per work week, up to seven days per year. Joint tests for all treatment regions let us exclude, with 90% statistical probability, that wages decreased by more than 1% as a result of the mandates. With 92% probability, we can exclude that employment decreased by more than 1%.

Suggested Citation

  • Pichler, Stefan & Ziebarth, Nicolas R., 2016. "Labor Market Effects of US Sick Pay Mandates," IZA Discussion Papers 9867, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9867
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    Cited by:

    1. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, 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. 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. Abi Adams‐Prassl & Teodora Boneva & Marta Golin & Christopher Rauh, 2020. "Furloughing," Fiscal Studies, John Wiley & Sons, vol. 41(3), pages 591-622, September.
    5. Timpe, Brenden, 2024. "The labor market impacts of America’s first paid maternity leave policy," Journal of Public Economics, Elsevier, vol. 231(C).
    6. Stefan Pichler & Nicolas R. Ziebarth, 2020. "Labor Market Effects of U.S. Sick Pay Mandates," Journal of Human Resources, University of Wisconsin Press, vol. 55(2), pages 611-659.
    7. Kevin Callison & Michael F. Pesko, 2016. "The Effect of Mandatory Paid Sick Leave Laws on Labor Market Outcomes, Health Care Utilization, and Health Behaviors," Upjohn Working Papers 16-265, W.E. Upjohn Institute for Employment Research.
    8. Pichler, Stefan & Ziebarth, Nicolas R., 2017. "The pros and cons of sick pay schemes: Testing for contagious presenteeism and noncontagious absenteeism behavior," Journal of Public Economics, Elsevier, vol. 156(C), pages 14-33.
    9. Johanna Catherine Maclean & Stefan Pichler & Nicolas R. Ziebarth, 2020. "Mandated Sick Pay: Coverage, Utilization, and Crowding-In," NBER Working Papers 26832, National Bureau of Economic Research, Inc.
    10. Jie Chen & Chad D. Meyerhoefer & Lizhong Peng, 2020. "The effects of paid sick leave on worker absenteeism and health care utilization," Health Economics, John Wiley & Sons, Ltd., vol. 29(9), pages 1062-1070, September.
    11. Debdeep Chattopadhyay, 2023. "Did the Massachusetts Health Reform Program increase self-employment?," Empirical Economics, Springer, vol. 65(3), pages 1309-1344, September.
    12. Stefan Pichler & Katherine Wen & Nicolas R. Ziebarth, 2021. "Positive Health Externalities of Mandating Paid Sick Leave," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 715-743, June.
    13. Pichler, Stefan & Ziebarth, Nicolas R., 2019. "Reprint of: The pros and cons of sick pay schemes: Testing for contagious presenteeism and noncontagious absenteeism behavior," Journal of Public Economics, Elsevier, vol. 171(C), pages 86-104.
    14. Stearns, Jenna & White, Corey, 2018. "Can paid sick leave mandates reduce leave-taking?," Labour Economics, Elsevier, vol. 51(C), pages 227-246.
    15. 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.

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    More about this item

    Keywords

    Quarterly Census of Employment and Wages (QCEW); United States; wages; synthetic control group; employment; employer mandates; medical leave; sick leave; sick pay mandates;
    All these keywords.

    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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