Petri, Böckerman and Ohto, Kanninen and Ilpo, Suoniemi (2018): A Kink that Makes You Sick: The Effect of Sick Pay on Absence. Published in: Journal of Applied Econometrics , Vol. 4, No. 33 (20 June 2018): pp. 568-579.
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Abstract
We exploit a regression kink design to estimate the elasticity of the duration of sickness absence with respect to replacement rate. Elasticity is a central parameter in defining the optimal social insurance scheme compensating for lost earnings due to sickness. We use comprehensive administrative data and a kink in the policy rule near the median earnings. We find a statistically significant estimate of the elasticity of the order of one.
Item Type: | MPRA Paper |
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Original Title: | A Kink that Makes You Sick: The Effect of Sick Pay on Absence |
Language: | English |
Keywords: | Sick pay, labor supply, sickness absence, regression kink design, social insurance |
Subjects: | H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions I - Health, Education, and Welfare > I1 - Health > I13 - Health Insurance, Public and Private J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply |
Item ID: | 87499 |
Depositing User: | Petri Böckerman |
Date Deposited: | 08 Jul 2018 16:56 |
Last Modified: | 26 Sep 2019 19:20 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/87499 |