Mandated Sick Pay: Coverage, Utilization, and Crowding-In

Abstract

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Positive Health Externalities of Mandating Paid Sick Leave

“…Those workers first must earn and accumulate sick time before they can take it. Maclean, Pichler, and Ziebarth (2020) show that sick leave utilization also increases linearly over the post‐mandate years, which matches up closely with the evidence presented here.…”

“…This cumulative decrease in ILI rates is consistent with the fact that a large share of about 40 percent of employees immediately gain the right to take unpaid sick leave (IMPAQ, 2017). Maclean, Pichler, and Ziebarth (2020) find that the mandates increased the probability that employers provide paid sick leave by 13 percentage points from a baseline of 66 percent. Those workers first must earn and accumulate sick time before they can take it.…”

“…Overall, our findings are consistent with companion research showing that employees take sick days when they obtain access to sick leave. Specifically, Maclean, Pichler, and Ziebarth (2020) use BLS data from the National Compensation Survey and find that the mandates increase coverage rates by 13 percentage points from a baseline of 66 percent. They also find that newly covered employees take two additional sick days as a result of the mandates.…”

“…Economic labor models clearly suggest—and empirical evidence clearly shows—that employees will take more sick days when sick leave generosity increases (Johansson & Palme, 2005; Maclean, Pichler, & Ziebarth, 2020). This overall employee labor supply response can be decomposed into a change in presenteeism (“working sick”) as well as shirking behavior (Pichler & Ziebarth, 2017).…”

Analysis of Patient Income in the 5 Years Following a Fracture Treated Surgically

“…28 The US has weaker employment protections than other Organization of Economic Cooperation and Development (OECD) countries, 29 and is only 1 of 3 OECD countries that do not provide universal access to paid sick leave. 30 A lack of such social insurance policies likely contributes to the significant financial loss observed after injury. Employer-based health insurance was the most common form of coverage in the study population.…”