Sick Leave Cuts and (Unhealthy) Returns to Work

Arbeitspapier

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 duration. Overall, the policy did reduce the number of days lost to sick leave. For some however, return to work was premature as we document very large increases in both the proportion of relapses and, especially in the number of working accidents. The displacement towards this latter (unaffected) benefit cancels out almost two-fifths of the estimated gains in terms of days lost to absences from cutting sick leave generosity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 9550

Classification and Topics

• Classification: Wirtschaft ; Health Behavior ; Health Insurance, Public and Private ; Health: Government Policy; Regulation; Public Health ; Time Allocation and Labor Supply ; Safety; Job Satisfaction; Related Public Policy ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
• Subject: sickness insurance ; paid sick leave ; absenteeism ; presenteeism ; relapses ; contagious diseases ; benefit displacement ; working accidents ; Spain

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Marie, Olivier ; Vall Castello, Judit
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/252067
• Last update: 10.03.2025, 11:42 AM CET