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ISER External Seminar: Mandated Sick Pay: Coverage, Utilization, and Substitution Effects External seminar

Abstract: This paper empirically evaluates the impact of employer sick pay mandates on sick pay coverage, utilization, and labor costs in the U.S. We also investigate substitution effects by estimating the impact on non-mandated fringe benefits such as paid vacation days. We use the National Compensation Survey along with Difference-in-Differences and triple differences models to estimate the causal effects of mandates in four states and eight cities. In the first two post-mandate years, the likelihood of having sick pay coverage increases significantly by 9 percentage points from a baseline level of 64 percent; coverage remains stable at this level for at least four more years. We find that newly covered employees take about two additional sick days in the first quarter of the year. These additional sick days increase labor costs by about 23 cents per hour worked for marginal firms. However, we find very little evidence that mandated sick pay crowd-out other non-mandated paid leave benefits.

Sandwiches served from 12.15

Presented by

Dr Nicolas Ziebarth, Cornell University

Date & time

16 Jan 2019, 12:30

Venue

ISER large seminar room, 2N2 4.16


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