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

Patrick Puhani and Katja Sonderhof

Journal of Health Economics, 2010, vol. 29, issue 2, 285-302

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 We also add to the literature by estimating both switch-on and switch-off effects, because the reform was repealed 2 years later.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.

Keywords: Sickness; pay; Absenteeism; Hospitalization; Difference-in-differences; Subjective; health (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (85)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-6296(10)00004-4
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Effects of a Sick Pay Reform on Absence and on Health-Related Outcomes (2009)
Working Paper: The Effects of a Sick Pay Reform on Absence and on Health-Related Outcomes (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:29:y:2010:i:2:p:285-302

Access Statistics for this article

Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

More articles in Journal of Health Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().