Mandated Sick Pay: Coverage, Utilization, and Crowding-In

Johanna Maclean, Stefan Pichler () and Nicolas Ziebarth ()

No 26832, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using the National Compensation Survey from 2009 to 2022 and difference-in-differences methods, we find that state-level sick pay mandates are effective in broadening access for U.S. workers. Increases in coverage reach 30ppt from a 63% baseline five years post-mandate. Mandates have more bite in jobs with low pre-mandate coverage. Further, mandates reduce inequality in access to paid sick leave substantially, both across and within firms. Covid-19 reinforced existing positive trends in coverage and take-up. Sick leave use increases linearly, whereas costs plateau after five years. Finally, we find crowding-in of non-mandated benefits which we label “job upscaling” by firms to differentiate jobs and attract labor.

JEL-codes: I12 I13 I18 J22 J28 J32 (search for similar items in EconPapers)
Date: 2020-03
New Economics Papers: this item is included in nep-hea, nep-hrm and nep-lma
Note: AG EH LS PE
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Citations: View citations in EconPapers (13)

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