6533b7d5fe1ef96bd1265129

RESEARCH PRODUCT

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

Ohto KanninenPetri BöckermanIlpo Suoniemi

subject

Economics and EconometricsSickness absenceta511Earningssosiaalivakuutus05 social sciencessocial insurancevakuutuksetsickness absencesairauspoissaolotRegressionComputer Science::Computers and SocietySocial insurance0502 economics and businessEconomicsEconometricslipids (amino acids peptides and proteins)elasticity050207 economicsElasticity (economics)Social Sciences (miscellaneous)050205 econometrics

description

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. peerReviewed

yearjournalcountryeditionlanguage
2018-03-13Journal of Applied Econometrics
10.1002/jae.2620https://doi.org/10.1002/jae.2620