The individual cost of sick leave
Link to article:
Authors:
Markussen, Simen
Year:
2012
Reference:
Journal of Population Economics
Vol 25(4), 1287-1306Summary
This paper aims to estimate the causal effect of sick leave on subsequent earnings and employment, using an administrative dataset for Norway. To obtain experiment-like variation in sick leave among otherwise similar workers, the leniency of these workers’ physicians—certifying sickness absences - is used as an instrumental variable for sick leave. A 1 percentage point increase in a worker’s sick leave rate is found to reduce his earnings by 1.2% 2 years later. Around half of the reduction in earnings can be explained by a reduction of 0.5 percentage points in the probability of being employed.
JEL:
J22 · J31 · J71
Keywords:
Sickness absence · Wage formation · IV estimation
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.:
Frisch prosjekt: 1134 - A viable welfare state
Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 187924
Frisch prosjekt: 4132 - Absenteeism in Norway - Causes, Censequences, and Policy Implications