Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/177026 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 11222
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Higher replacement rates often imply higher levels of absenteeism, yet even in generous welfare economies, private sick pay is provided in addition to the public sick pay. Why? Using comparative workplace data for the UK and Norway we show that the higher level of absenteeism in Norway compared to UK is related to the threshold in the Norwegian public sick pay legislation. This threshold's importance is confirmed in a Regression Kinked Design (RKD) analysis on the Norwegian micro-data. Private sick pay is provided as an employer-provided non-wage benefit and when training costs are high.
Subjects: 
absenteeism
public sick pay
private sick pay
comparative
JEL: 
H31
J22
J28
J32
Document Type: 
Working Paper

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