The effects of a sick pay reform on absence and on health-related outcomes

authored by

Patrick A. Puhani, Katja Sonderhof

Abstract

We evaluate the effects of a reduction in sick pay from 100 to 80% of the wage. Unlike previous literature, apart from absence from work, we also consider effects on doctor/hospital visits and subjective health indicators. We also add to the literature by estimating both switch-on and switch-off effects, because the reform was repealed 2 years later. We find a 2-day reduction in the number of days of absence. Quantile regression reveals higher point estimates (both in absolute and relative terms) at higher quantiles, meaning that the reform predominantly reduced long durations of absence. In terms of health, the reform reduced the average number of days spent in hospital by almost half a day, but we cannot find robust evidence for negative effects on health outcomes or perceived liquidity constraints.

Organisation(s)

Institute of Labour Economics

Type

Article

Journal

Journal of health economics

Volume

29

Pages

285-302

No. of pages

18

ISSN

0167-6296

Publication date

03.2010

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Health Policy, Public Health, Environmental and Occupational Health

Sustainable Development Goals

SDG 3 - Good Health and Well-being

Electronic version(s)

https://doi.org/10.1016/j.jhealeco.2010.01.003 (Access: Closed)
https://econpapers.repec.org/RePEc:iza:izadps:dp4607 (Access: Open)