Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331685 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18121
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This study examines the impact of receiving one additional week of paid vacation on labor market attachment among Norwegian workers aged 60+. Employing a triple-differences estimation strategy, we exploit age-based eligibility thresholds before and after a 2009 reform to identify causal effects. Our findings indicate that the extra leave has negligible effects on both employment, sickness absence and disability benefit receipt in the year workers first receive it. If anything, some workers use the additional vacation time to increase earnings from secondary employers. The results imply that policymakers should consider alternative measures to mandated leave to support an aging workforce.
Subjects: 
paid vacation
older workers
labor supply
triple-differences
public policy
JEL: 
H8
I12
J22
J26
Document Type: 
Working Paper

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