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The individual cost of sick leave

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Forfattere:

Markussen, Simen

År:

2012

Referanse:

Journal of Population Economics

Vol 25(4), 1287-1306

Summary

This paper aims to estimate the causal effect of sick leave on subsequent earnings and employment, using an administrative dataset for Norway. To obtain experiment-like variation in sick leave among otherwise similar workers, the leniency of these workers’ physicians—certifying sickness absences - is used as an instrumental variable for sick leave. A 1 percentage point increase in a worker’s sick leave rate is found to reduce his earnings by 1.2% 2 years later. Around half of the reduction in earnings can be explained by a reduction of 0.5 percentage points in the probability of being employed.

Nøkkelord:

Sickness absence · Wage formation · IV estimation

JEL:

J22 · J31 · J71

Prosjekt info:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1134 - En levedyktig velferdsstat

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 187924
Frisch prosjekt: 4132 - Sykefravær i Norge - Årsaker, konsekvenser og politikkimplikasjoner