TY  - RPRT
        AU  - Böckerman, Petri
AU  - Kanninen, Ohto
AU  - Suoniemi, Ilpo
        TI  - A Kink that Makes You Sick: The Incentive Effect of Sick Pay on Absence
        PY  - 2014/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8205
        UR  - https://www.iza.org/publications/dp8205
        AB  - This paper examines the effect of the replacement rule of the Finnish sickness insurance system on the duration of sickness absence. A pre-determined, piecewise linear policy rule in which the replacement rate is determined by past earnings allows identification of the effect using a regression kink design. We find a substantial and robust behavioral response. The statistically significant point estimate of the elasticity of the duration of sickness absence with respect to the replacement rate is on the order of 1.4.
        KW  - paid sick leave
KW  - sickness absence
KW  - labor supply
KW  - sick pay
KW  - regression kink design
        ER  -