Mandated Sick Pay: Coverage, Utilization, and Welfare Effects
Stefan Pichler () and
Nicolas Ziebarth ()
No 26832, NBER Working Papers from National Bureau of Economic Research, Inc
This paper evaluates the labor market effects of sick pay mandates in the United States. Using the National Compensation Survey and difference-in-differences models, we estimate their impact on coverage rates, sick leave use, labor costs, and non-mandated fringe benefits. Sick pay mandates increase coverage significantly by 13 percentage points from a baseline level of 66%. Newly covered employees take two additional sick days per year. We find little evidence that mandating sick pay crowds-out other non-mandated fringe benefits. We then develop a model of optimal sick pay provision along with a welfare analysis. Mandating sick pay likely increases welfare.
JEL-codes: I12 I13 I18 J22 J28 J32 (search for similar items in EconPapers)
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Working Paper: Mandated Sick Pay: Coverage, Utilization, and Welfare Effects (2020)
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