Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263552 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15336
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study how firms respond to predictable, but uncertain, worker absences arising from maternity and non-work-related sickness leave. Using administrative data on over 1.5 million spells of leave in Brazil, we identify the short-run effects of a leave spell starting on firms' employment, hiring, and separations. Firms respond immediately by increasing hiring, but the increase is substantially less than one-for-one replacement. Hiring responses are more pronounced for absences arising in occupations with more transferable skills and in firms operating in thicker labor markets. Overall, our results imply that using external markets is costly and firms manage absences through other channels.
Subjects: 
employment determination
hires
job turnover
maternity leave
sick leave
JEL: 
J23
J21
J63
J68
J13
Document Type: 
Working Paper

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