The Effects of Sick-Leaves on Earnings

Simen Markussen

Memo 20/2009

Last ned memo

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.

Published June 20, 2014 11:36 AM - Last modified Jan. 24, 2019 11:43 AM