The effects of expanding the generosity of the statutory sickness insurance system

Nicolas Ziebarth () and Martin Karlsson

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: In 1999, in Germany, the statutory sick pay level was increased from 80 to 100 percent of foregone earnings for sickness episodes of up to six weeks. We show that this reform has led to an increase in average absence days of about 10 percent or one additional day per employee, per year. The estimates are based on SOEP survey data and parametric, nonparametric, and combined matching-regression difference-in-differences methods. Extended calculations suggest that the reform might have increased labor costs by about e1.8 billion per year and might have led to the loss of around 50,000 jobs.

Keywords: sickness absence; statutory sick pay; natural experiment; Socio-Economic Panel Study (SOEP) (search for similar items in EconPapers)
JEL-codes: H51 I18 J22 (search for similar items in EconPapers)
Date: 2009-12
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: THE EFFECTS OF EXPANDING THE GENEROSITY OF THE STATUTORY SICKNESS INSURANCE SYSTEM (2014)
Working Paper: The Effects of Expanding the Generosity of the Statutory Sickness Insurance System (2013)
Working Paper: The Effects of Expanding the Generosity of the Statutory Sickness Insurance System (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:09/35

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