Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/99004
Authors: 
Böckerman, Petri
Kanninen, Ohto
Suoniemi, Ilpo
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8205
Abstract: 
This paper examines the effect of the replacement rule of the Finnish sickness insurance system on the duration of sickness absence. A pre-determined, piecewise linear policy rule in which the replacement rate is determined by past earnings allows identification of the effect using a regression kink design. We find a substantial and robust behavioral response. The statistically significant point estimate of the elasticity of the duration of sickness absence with respect to the replacement rate is on the order of 1.4.
Subjects: 
sick pay
labor supply
sickness absence
paid sick leave
regression kink design
JEL: 
I13
I18
J22
Document Type: 
Working Paper

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