Absenteeism, Unemployment and Employment Protection Legislation: Evidence from Italy

Scoppa, Vincenzo; Vuri, Daniela

doi:10.2139/ssrn.2197235

Cited by 10 publications

(10 citation statements)

References 39 publications

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“…For instance, Scoppa and Vuri (2014) find that workers who are absent more frequently face higher risks of dismissal. Thus even in countries with nominally full replacement, in our model, this might translate to a replacement rate smaller than one.…”

Section: Modeling Contagious Presenteeism and Noncontagious Absenteeimentioning

confidence: 99%

The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Noncontagious Absenteeism Behavior

Pichler

Ziebarth

2016

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This paper provides an analytical framework and uses data from the US and Germany to test for the existence of contagious presenteeism and negative externalities in sickness insurance schemes. The first part exploits high-frequency Google Flu data and the staggered implementation of U.S. sick leave reforms to show in a reduced-from framework that population-level influenza-like disease rates decrease after employees gain access to paid sick leave. Next, a simple theoretical framework provides evidence on the underlying behavioral mechanisms. The model theoretically decomposes overall behavioral labor supply adjustments ('moral hazard') into contagious presenteeism and noncontagious absenteeism behavior and derives testable conditions. The last part illustrates how to implement the model exploiting German sick pay reforms and administrative industry-level data on certified sick leave by diagnoses. It finds that the labor supply elasticity for contagious diseases is significantly smaller than for noncontagious diseases. Under the identifying assumptions of the model, in addition to the evidence from the U.S., this finding provides indirect evidence for the existence of contagious presenteeism. Stefan Pichler AbstractThis paper provides an analytical framework and uses data from the US and Germany to test for the existence of contagious presenteeism and negative externalities in sickness insurance schemes. The first part exploits high-frequency Google Flu data and the staggered implementation of U.S. sick leave reforms to show in a reduced-from framework that population-level influenza-like disease rates decrease after employees gain access to paid sick leave. Next, a simple theoretical framework provides evidence on the underlying behavioral mechanisms. The model theoretically decomposes overall behavioral labor supply adjustments ('moral hazard') into contagious presenteeism and noncontagious absenteeism behavior and derives testable conditions. The last part illustrates how to implement the model exploiting German sick pay reforms and administrative industry-level data on certified sick leave by diagnoses. It finds that the labor supply elasticity for contagious diseases is significantly smaller than for noncontagious diseases. Under the identifying assumptions of the model, in addition to the evidence from the U.S., this finding provides indirect evidence for the existence of contagious presenteeism.

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Section: Modeling Contagious Presenteeism and Noncontagious Absenteeimentioning

confidence: 99%

The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Noncontagious Absenteeism Behavior

Pichler

Ziebarth

2016

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“…5 More precisely, we assume that at every point in time there exist three fractions of workers: a first share of workers, 1 − q − p t , who are healthy; a second share of workers, q, who are sick due to a noncontagious disease, σ t = σ nt ; and a third share of workers, p t , who are sick due to a contagious 4 Notice that the wage may also include nonmonetary benefits, such as more job security. For instance, Scoppa and Vuri (2014) find that workers who are absent more frequently face higher risks of dismissal. Thus even in countries with nominally full replacement, in our model, this might translate to a replacement rate smaller than one due to future income opportunities and other costs and benefits.…”

Section: Two Types Of Diseases and Negative Externalities Due To Contmentioning

confidence: 99%

The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Shirking Behavior

Pichler¹,

Ziebarth²

2015

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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 noncontagious diseases. Lastly, using Google Flu data and the staggered implementation of U.S. sick leave reforms, we show that flu rates decrease after employees gain access to paid sick leave. JEL Classification Codes: I12, I13, I18, J22, J28, J32

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“…1 This suggests a positive impact on absence, given the substantial evidence that employment protection fosters absence (Ichino and Riphahn 2005, Olsson 2009, Scoppa and Vuri 2014.…”

Section: The Work Constitution Act and Absence Behaviourmentioning

confidence: 99%

Sickness Absence and Works Councils: Evidence from German Individual and Linked Employer-Employee Data

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Using both household and linked employer-employee data for Germany, we assess the effects of non-union representation in the form of works councils on (1) individual sickness absence rates and (2) a subjective measure of personnel problems due to sickness absence as perceived by a firm's management. We find that the existence of a works council is positively correlated with the incidence and the annual duration of absence. We observe a more pronounced correlation in western Germany which can also be interpreted causally. Further, personnel problems due to absence are more likely to occur in plants with a works council. Terms of use: Documents inJEL Classification: J53, I18, M54

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Absenteeism, Unemployment and Employment Protection Legislation: Evidence from Italy

Cited by 10 publications

References 39 publications

The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Noncontagious Absenteeism Behavior

The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Noncontagious Absenteeism Behavior

The Pros and Cons of Sick Pay Schemes: Testing for Contagious Presenteeism and Shirking Behavior

Sickness Absence and Works Councils: Evidence from German Individual and Linked Employer-Employee Data

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