Paper by Olivier Marie published in the Journal of Labor Economics

Abstract

We investigate the impact on work absences of a large reduction in paid sick leave benefits in Spain. Our results highlight substantial decreases in frequency (number of spells) mostly offset by increases in duration (length of spells). Overall, the policy did reduce the number of days lost to sick leave. For some, however, return to work was premature, as we document large increases in both the proportion of relapses and the number of working accidents. Displacement toward this unaffected benefit scheme cancels out almost two-fifths of the gains in terms of estimated absence reductions from the sick leave benefit cut.

Article citation and access to full article:

Olivier Marie and Judit Vall Castelló, Sick Leave Cuts and (Unhealthy) Returns to Work, Journal of Labor Economics, Volume 41, Number 4, October 2023, doi.org/10.1086/720629.

Note that a publication by research fellow Marc Witte (Vrije Universiteit Amsterdam) also appeared in Volume 41(4) of the Journal of Labor Economics.