TY - RPRT AU - Maclean, J. Catherine AU - Pichler, Stefan AU - Ziebarth, Nicolas R. TI - Mandated Sick Pay: Coverage, Utilization, and Welfare Effects PY - 2020/Apr/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 13132 UR - https://www.iza.org/index.php/publications/dp13132 AB - 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. For a range of plausible parameter values, mandating sick pay increases welfare. KW - labor costs KW - unintended consequences KW - moral hazard KW - fringe benefits KW - employer mandates KW - medical leave KW - sick leave KW - sick pay mandates KW - National Compensation Survey (NCS) KW - welfare effects KW - optimal social insurance KW - Baily-Chetty ER -