The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Shirking Behavior
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Date
2015-09
Publication Type
Working Paper
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yes
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Abstract
This paper proposes a test for the existence and degree of contagious presenteeism and negative externalities in sickness insurance schemes. First, we theoretically decompose moral hazard into shirking and contagious presenteeism behavior and derive testable conditions. Then, we implement the test exploiting German sick pay reforms and administrative industry-level data on certified sick leave by diagnoses. The labor supply adjustment for contagious diseases is significantly smaller than for non-contagious diseases. Lastly, using Google Flu data and the staggered implementation of US sick leave reforms, we show that flu rates decrease after employees gain access to paid sick leave.
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published
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Volume
394
Pages / Article No.
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KOF Swiss Economic Institute, ETH Zurich
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Subject
Paid Sick Leave; US; UNFALLSTATISTIK + KRANKHEITSSTATISTIK; INFECTIOUS DISEASES + CONTAGIOUS DISEASES + COMMUNICABLE DISEASES (MEDICINE); EXTERNE EFFEKTE; Sickness Insurance; Contagious Diseases; INFEKTIONSKRANKHEITEN + ANSTECKENDE KRANKHEITEN + ÜBERTRAGBARE KRANKHEITEN (MEDIZIN); GERMANY (CENTRAL EUROPE). FEDERAL REPUBLIC OF GERMANY; Presenteeism; ACCIDENT STATISTICS + SICKNESS STATISTICS; DEUTSCHLAND (MITTELEUROPA). BUNDESREPUBLIK DEUTSCHLAND; VERSICHERUNGSWESEN; INSURANCE; EXTERNALITIES; VEREINIGTE STAATEN VON AMERIKA, USA (NORDAMERIKA); Shirking; Germany; Negative Externalities; UNITED STATES OF AMERICA, USA (NORTH AMERICA); Infections
Organisational unit
03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute