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
There are 3 versions of this paper
If Sick-Leave Becomes More Costly, Will I Go Back to Work? Could It Be Too Soon?
If Sick-Leave becomes More Costly, Will I Go Back to Work? Could it be Too Soon?
If Sick-Leave Becomes More Costly, Will I Go Back to Work? Could it Be Too Soon?
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: Suggested Citation