Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/47347 
Year of Publication: 
2009
Series/Report no.: 
Memorandum No. 2009,20
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
This paper assesses the causal effect of sick-leaves on subsequent earnings using an administrative dataset for Norway linking individual earnings, sick-leave records and primary care physicians. The leniency of a worker's physician - certifying sickness absence - is used as instrument for sick-leaves. Sick-leaves have a substantial impact on future earnings, reducing earnings by .3 percent per day of absence. When conditioning on full-time employment also two years after sickness the effect is .06 percent per day of absence. These effects are persistent over time and work mainly through wages not hours.
Subjects: 
sickness absence
wage formation
IV estimation
wage regression
JEL: 
C31
J22
J24
J31
J33
J71
Document Type: 
Working Paper

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