Mandated Sick Pay: Coverage, Utilization, and Crowding-in

A-Tier
Journal: Journal of the European Economic Association
Year: 2025
Volume: 23
Issue: 5
Pages: 1868-1907

Authors (3)

Johanna Catherine Maclean (not in RePEc) Stefan Pichler (not in RePEc) Nicolas R Ziebarth (Leibniz-Zentrum für Europäisch...)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

Using the National Compensation Survey from 2009 to 2022 and difference-in-differences methods, we find that state-level sick pay mandates are effective in broadening access to paid sick leave for U.S. workers. Increases in sick pay coverage reach 30 percentage points from a 63% baseline 5 years post-mandate. Mandates have more bite in jobs with low pre-mandate coverage. Further, mandates reduce inequality in access to paid sick leave substantially, both across and within firms. COVID-19 reinforced existing upward trends in coverage and take-up. Five years post mandate, sick leave use has linearly increased to 2.4 days per year for marginal jobs. Finally, we find crowding-in of non-mandated benefits, which we label “job upscaling” by firms to differentiate jobs and attract labor.

Technical Details

RePEc Handle
repec:oup:jeurec:v:23:y:2025:i:5:p:1868-1907.
Journal Field
General
Author Count
3
Added to Database
2026-01-29