The effects of paid sick leave on worker absenteeism and health care utilization

Abstract

We estimate the short‐term effects of paid sick leave on worker absenteeism and health care utilization in the United States using data from the 2000–2013 Medical Expenditure Panel Survey. We use both parametric and matching‐based difference‐in‐differences methods to account for nonrandom selection into jobs that offer paid sick leave and estimate the treatment effect separately for workers who gained and lost sick leave benefits. We find consistent evidence of increased absenteeism among female workers who gained paid sick leave but not for other groups. Estimates for office‐based visits are mostly statistically insignificant and may not have a causal interpretation due to preexisting trends.