Arbeitspapier

A Natural Experiment on Sick Pay Cuts, Sickness Absence, and Labor Costs

This study estimates the reform effects of a reduction in statutory sick pay levels on various outcome dimensions. A federal law reduced the legal obligation of German employers to provide 100 percent continued wages for up to six weeks per sickness episode to 80 percent. This measure increased the ratio of employees having no days of absence by about 7.5 percent. The mean number of absence days per year decreased by about 5 percent. The reform might have reduced total labor costs by about €1.5 billion per year which might have led to the creation of around 50,000 new jobs.

Language
Englisch

Bibliographic citation
Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 244

Classification
Wirtschaft
National Government Expenditures and Health
Health: Government Policy; Regulation; Public Health
Time Allocation and Labor Supply

Event
Geistige Schöpfung
(who)
Ziebarth, Nicolas R.
Karlsson, Martin
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2009

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ziebarth, Nicolas R.
  • Karlsson, Martin
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2009

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