Arbeitspapier
A Kink that Makes You Sick: The Incentive Effect of Sick Pay on Absence
This paper examines the effect of the replacement rule of the Finnish sickness insurance system on the duration of sickness absence. A pre-determined, piecewise linear policy rule in which the replacement rate is determined by past earnings allows identification of the effect using a regression kink design. We find a substantial and robust behavioral response. The statistically significant point estimate of the elasticity of the duration of sickness absence with respect to the replacement rate is on the order of 1.4.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 8205
- Classification
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Wirtschaft
Health Insurance, Public and Private
Health: Government Policy; Regulation; Public Health
Time Allocation and Labor Supply
- Subject
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sick pay
labor supply
sickness absence
paid sick leave
regression kink design
- Event
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Geistige Schöpfung
- (who)
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Böckerman, Petri
Kanninen, Ohto
Suoniemi, Ilpo
- Event
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Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2014
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Böckerman, Petri
- Kanninen, Ohto
- Suoniemi, Ilpo
- Institute for the Study of Labor (IZA)
Time of origin
- 2014