Arbeitspapier

Sick Pay Reforms and Health Status in a Unionised Labour Market

We theoretically analyse the effects of sick pay and employees’ health on collective bargaining, assuming that individuals determine absence optimally. If sick pay is set by the government and not paid for by firms, it induces the trade union to lower wages. This mitigates the positive impact on absence. Moreover, a union may oppose higher sick pay if it reduces labour supply sufficiently. Better employee health tends to foster wage demands. If the union determines both wages and sick pay, we identify situations in which it will substitute wages for sick pay because adverse absence effects can be mitigated.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 6177

Klassifikation
Wirtschaft
Externalities
Health Insurance, Public and Private
Health: Government Policy; Regulation; Public Health
Time Allocation and Labor Supply
Trade Unions: Objectives, Structure, and Effects
Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
Thema
absence
employment
sick pay
trade union
wage determination

Ereignis
Geistige Schöpfung
(wer)
Goerke, Laszlo
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Goerke, Laszlo
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2016

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