The individual cost of sick leave

Lenke til artikkel:



Markussen, Simen




Andre skrifter

Sammendrag (engelsk)

This paper assesses the causal effect of sick leave on subsequent earnings and employment, using an administrative dataset for Norway to link individual earnings, sick-leave records and primary care physicians. To create an experiment-like setting where similar workers are given different sick-leave durations, the leniency of a worker's physician - certifying sickness absences - is used as an instrumental variable for sick leave. I find that a one percentage point increase in a worker’s sick-leave rate reduces his earnings two years later by 1.2 percent. Around half of the reduction in earnings can be explained by a reduction of 0.5 percentage points in the probability of being employed.


sickness absence, wage formation, IV estimation, wage regression


C31, J22, J24, J31, J33, J71

Prosjekt info:

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