Paid Sick Leave and Absenteeism: The First Evidence from the U.S

Thomas Ahn and Aaron Yelowitz

MPRA Paper from University Library of Munich, Germany

Abstract: Using a balanced sample of workers from the NHIS, we estimate of the impact of paid sick leave (PSL) insurance on absenteeism in the United States. PSL increases absenteeism by 1.2 days per year, a large effect given the typical benefit duration. Consistent with moral hazard, the effects are concentrated in moderate sick days, not severe ones. In addition, we merge the NHIS with Google Flu Trends. Severe influenza outbreaks lead workers to exhaust sick days, consequently leading to a replacement rate of zero for additional absences. Consistent with a lower replacement rate, worker absenteeism is reduced on the margin.

Keywords: Paid Sick Leave; Absenteeism; Presenteeism; Moral Hazard; Google Flu Trends (search for similar items in EconPapers)
JEL-codes: H51 I18 J22 (search for similar items in EconPapers)
Date: 2016-03-01
New Economics Papers: this item is included in nep-hea and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69794

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