TY - RPRT AU - Puhani, Patrick A. AU - Sonderhof, Katja TI - The Effects of a Sick Pay Reform on Absence and on Health-Related Outcomes PY - 2009/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 4607 UR - https://www.iza.org/publications/dp4607 AB - We evaluate the effects of a reduction in sick pay from 100 to 80% of the wage. Unlike previous literature, apart from absence from work, we also consider effects on doctor/hospital visits and subjective health indicators. We also add to the literature by estimating both switch-on and switch-off effects, because the reform was repealed two years later. We find a two-day reduction in the number of days of absence. Quantile regression reveals higher point estimates (both in absolute and relative terms) at higher quantiles, meaning that the reform predominantly reduced long durations of absence. In terms of health, the reform reduced the average number of days spent in hospital by almost half a day, but we cannot find robust evidence for negative effects on health outcomes or perceived liquidity constraints. KW - intrinsic motivation KW - sickness pay KW - absenteeism KW - health expenditure KW - hospitalization KW - difference-in-differences KW - switch on KW - switch off KW - quantile regression ER -