If Sick-Leave becomes More Costly, Will I Go Back to Work? Could it be Too Soon?

Tinbergen Institute Discussion Paper 2020-032/V

47 Pages Posted: 14 Jul 2020

See all articles by Olivier Marie

Olivier Marie

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Judit Vall Castelló

University of Barcelona

Multiple version iconThere are 3 versions of this paper

Date Written: June 20, 2020

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, however, return to work may have been premature as we document huge increases in both the proportion of relapses and working accidents rates.

Keywords: Sickness Insurance, Paid Sick Leave, Absenteeism, Presenteeism, Relapses Contagious Diseases, Benefit Displacement, Working Accidents, Negative Externalities, Spain

JEL Classification: J32, I12, I13, I18, J22, J28

Suggested Citation

Marie, Olivier and Vall Castelló, Judit, If Sick-Leave becomes More Costly, Will I Go Back to Work? Could it be Too Soon? (June 20, 2020). Tinbergen Institute Discussion Paper 2020-032/V, Available at SSRN: https://ssrn.com/abstract=3631743 or http://dx.doi.org/10.2139/ssrn.3631743

Olivier Marie (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Judit Vall Castelló

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

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