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Sickness Absence, Sick Leave Pay, and Pay Schemes
Author(s) -
DaleOlsen Harald
Publication year - 2014
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/labr.12022
Subject(s) - sick leave , legislation , compensation (psychology) , demographic economics , labour economics , pay for performance , business , public economics , economics , health care , psychology , law , economic growth , political science , social psychology
Abstract Utilizing N orwegian linked register and survey data, while exploiting a discontinuity in public sick pay legislation, I show that the public sick pay compensation level causally affects male performance pay workers' sick leave days. Both male and female performance pay workers experience longer sick leaves when provided private supplementary sick pay compared with those being eligible for public sick pay only. This differential impact of the replacement rate on workers' sick leave rates reveals heterogeneous behavioural changes following public sick pay cuts, and this heterogeneity will be reinforced by the provision of employer‐provided sick pay to attractive worker groups.