Working Paper: CEPR ID: DP14899
Authors: Olivier Marie; Judit Vallcastello
Abstract: We investigate the impact on work absence of a massive reduction in paid sick leave benefits. We exploit a policy change that only affected public sector workers in Spain and compare changes in the number and length of spells they take relative to unaffected private sector workers. Our results highlight a large drop in frequency mostly offset by increases in average duration. Overall, the policy did reduce number of days lost to sick leave. For some, however, return to work may have been premature as we document huge increases in both the proportion of relapses and working accidents rates.
Keywords: sickness insurance; paid sick leave; absenteeism; presenteeism; relapses; contagious diseases; benefit displacement; working accidents; negative externalities; spain
JEL Codes: I12; I13; I18; J22; J28; J32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| sick leave policy reform (J22) | reduction in the number of sickness absence spells among public sector workers (J22) |
| sick leave policy reform (J22) | increase in the average duration of sick leave spells (C41) |
| sick leave policy reform (J22) | reduction in the total number of days lost to sick leave per worker per quarter (J22) |
| sick leave policy reform (J22) | increase in the proportion of relapses (C41) |
| sick leave policy reform (J22) | increase in relapses for shorter spells (C41) |
| sick leave policy reform (J22) | increase in relapses for absences related to infectious diseases (I12) |
| sick leave policy reform (J22) | increase in days lost due to work-related accidents (J28) |