A Kink that Makes You Sick: The Effect of Sick Pay on Absence
Summary
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.
Julkaisun tiedot
Böckerman, P., Kanninen, O,. & Suoniemi, I. (2018), A Kink that Makes You Sick: The Effect of Sick Pay on Absence, Journal of Applied Econometrics, 33:4, 568—579.
Linkki julkaisuun
- ISSN: 0883-7252, e-ISSN: 1099-1255
![](https://labore.fi/cache/images/a/6/1/5f/BockermanPetri_3831_2022_1024px-aspect-ratio-560-492-2-280x246.jpg)
- Petri Böckerman
- johtava tutkija
- Puh. +358-40 091 3189
- petri.bockerman@labore.fi
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![](https://labore.fi/cache/images/1/e/2/dc/KanninenOhto_3582_2022_1024px-aspect-ratio-560-492-280x246.jpg)
- Ohto Kanninen
- johtava tutkija
- Puh. +358-41 513 7175
- ohto.kanninen@labore.fi
- Tutkijaprofiili