A kink that makes you sick: The effect of sick pay on absence | Zendy

Böckerman Petri | Zendy; Kanninen Ohto | Zendy; Suoniemi Ilpo | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Premium

A kink that makes you sick: The effect of sick pay on absence

Author(s) -

Böckerman Petri,

Kanninen Ohto,

Suoniemi Ilpo

Publication year - 2018

Publication title -

journal of applied econometrics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 2.878

H-Index - 99

eISSN - 1099-1255

pISSN - 0883-7252

DOI - 10.1002/jae.2620

Subject(s) - exploit , earnings , elasticity (physics) , economics , econometrics , sick leave , regression , social insurance , statistics , computer science , mathematics , labour economics , physics , finance , market economy , computer security , thermodynamics

Summary 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.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here

Accelerating Research