Petri Böckerman
;
Ohto Kanninen
;
Ilpo Suoniemi

a kink that makes you sick: the effect of sick pay on absence (replication data)

We exploit a regression kink design to estimate the elasticity of the duration of sickness absence with respect to replacement rate. Elasticity is a central parameter in defining the optimal social insurance scheme compensating for lost earnings due to sickness. We use comprehensive administrative data and a kink in the policy rule near the median earnings. We find a statistically significant estimate of the elasticity of the order of one.

Data and Resources

Suggested Citation

Böckerman, Petri; Kanninen, Ohto; Suoniemi, Ilpo (2018): A kink that makes you sick: The effect of sick pay on absence (replication data). Version: 1. Journal of Applied Econometrics. Dataset. http://dx.doi.org/10.15456/jae.2022326.0709856993