Further research
Working papers
Sick Leave and Medical Leave in the United States: A Categorization and Recent Trends (IZA discussion paper - January 2024)
with Nicolas Ziebarth
Abstract: This article reviews the current debate about sick pay mandates and medical leave in the United States. The United States is one of three industrialized countries that do not guarantee access to paid sick leave for all employees. We first provide a categorization of the different paid leave concepts such as sick leave, medical leave, or temporary disability insurance, both in a domestic and an international context. Then we use data from the National Compensation Survey to sketch employee coverage rates by type of job. We also document changes since 2010, focusing on paid sick leave. Although gaps in access have decreased over the past decade, we still find large inequalities in access to paid sick leave: While overall coverage increased to 78% in 2023 from 64% in 2015, about half of all part-time employees, employees in the bottom quarter of the wage distribution, and employees in the accommodation and food industry still have no access to paid sick leave benefits. In the last part, we discuss implications of the lack of access to paid sick and medical leave benefits. Moreover, building on international research findings and experiences, we discuss what a possible integration, coordination, and expansion of the co-existing programs could look like.
Keywords:
I12, I13, I18, J22, J28, J32
Sick pay mandates, sick leave, medical leave, paid leave, inequality, employer mandates, fringe benefits, moral hazard, unintended consequences, labor costs, National Compensation Survey (NCS)
Mandated Sick Pay: Coverage, Utilization and Welfare Effects (newest version! - March 2021, NBER working paper - March 2020, IZA discussion paper - April 2020)
with Nicolas Ziebarth and Catherine Maclean
Abstract: This paper evaluates the labor market effects of sick pay mandates in the United States. Using the National Compensation Survey and difference-in-differences models, we estimate their impact on coverage rates, sick leave use, labor costs, and non-mandated fringe benefits. Sick pay mandates increase coverage significantly by 13 percentage points from a baseline level of 66%. Newly covered employees take two additional sick days per year. We find little evidence that mandating sick pay crowds-out other non-mandated fringe benefits. We then develop a model of optimal sick pay provision along with a welfare analysis. Mandating sick pay likely increases welfare.
Keywords:
I12, I13, I18, J22, J28, J32
Sick pay mandates, sick leave, medical leave, employer mandates, fringe benefits, moral hazard, unintended consequences, labor costs, National Compensation Survey (NCS), welfare effects, optimal social insurance, Baily-Chetty
Does It Really Make a Difference? Health Care Utilization with Two High Deductible Health Care Plans [KOF Working Paper No. 404, 2016]
with Jan Ruffner
Abstract: Deductibles are commonly used to tame increasing health care costs. Numerous studies find that higher deductibles reduce health care utilization. In this paper we compare utilization in Switzerland between two health care plans with deductibles of 1,500 CHF and 2,500 CHF (1CHF≃1$) per calendar year. While there is a minimum deductible level in Switzerland, individuals are free to increase their deductible and thereby reduce their insurance premium. In order to distinguish between selection and moral hazard we use regional variation in premiums as an instrument. Moreover, we take advantage of a policy change in 2005 that introduced the higher deductible for the first time. The results show that selection leads to considerable differences in utilization between the two groups, while we find no behavioral differences across both groups. If anything health care expenditures are higher for male individuals with the higher deductible, while for females there are no differences between the two deductible levels.
Keywords:
I13; I12; C23; C26
Health insurance; Moral hazard; Advantageous selection; Deductible; Instrumental variables
Sickness absence and unemployment revisited [Working Paper, 2019]
with Stefanie Thönnes
Abstract: In this paper we use administrative data from a sickness fund to estimate the relationship between sickness absence and unemployment. Previous research suggests that sickness absence is procyclical. However, we show that this largely depends on disease and employee characteristics. In line with our theoretical analysis employee characteristics affect incentives faced by individuals. In particular, we find large differences depending on whether workers change jobs. While workers who stay with the same employer reduce sickness absence during recessions, while workers switching employers reduce sickness absence during booms. Finally, contagious diseases appear to be the driver of procyclical sickness absence.
Keywords:
J21, J64, J32, I12
Sickness Absence, Unemployment, Infections
The Economic Impact of the HIV Pandemic
with Martin Karlsson, Chapter 2 in Infectious Diseases and the Economy, 2013
In this study, we estimate the effects of the HIV pandemic on economic performance in the most heavily affected countries using a synthetic control group approach. We employ data from the three most widely used sources for growth studies. Our results show large differences from country to country and depending on the data source. However, for three countries we find large effects ranging from 97-588% of GDP per capita on average in 2005. Moreover, for three other heavily affected countries all data sources agree that HIV had no impact on GDP per capita.
Keywords:
I15, O15
HIV, AIDS, synthetic control groups, Africa
Juvenile Law and Recidivism in Germany-New Evidence from the Old Continent (University of Heidelberg Discussion Paper Series No. 519, 2011)
with Daniel Römer
In this paper, we analyze the effect of the criminal justice system on juvenile recidivism. Using a unique sample of German inmates, we are able to disentangle the selection into criminal and juvenile law from the subsequent recidivism decision of the inmate. We base our identification strategy on two distinct methods. First, we jointly estimate selection and recidivism in a bivariate probit model. In a second step, we use a discontinuity in law assignment created by German legislation and apply a (fuzzy) regression discontinuity design. In contrast to the bulk of the literature, which mainly relies on US data, we do not find that the application of criminal law increases juvenile recidivism. Rather, our results suggest that sentencing adolescents as adults reduces recidivism in Germany.
Keywords:
K42, K14, C21, C14
Crime, Juvenile Recidivism, Regression Discontinuity, Bivariate Probit
Sensitivity Analysis in Program Evaluation: Endogeneity and Spillover Effects
mimeo, 2012