A kink that makes you sick: The effect of sick pay on absence

B-Tier
Journal: Journal of Applied Econometrics
Year: 2018
Volume: 33
Issue: 4
Pages: 568-579

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We exploit a regression kink design to estimate the elasticity of the duration of sickness absence with respect to replacement rate. Elasticity is a central parameter in defining the optimal social insurance scheme compensating for lost earnings due to sickness. We use comprehensive administrative data and a kink in the policy rule near the median earnings. We find a statistically significant estimate of the elasticity of the order of one.

Technical Details

RePEc Handle
repec:wly:japmet:v:33:y:2018:i:4:p:568-579
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-24