individuals determine absence optimally. If sick pay is set by the government and not paid for by firms, it induces the trade … union to lower wages. This mitigates the positive impact on absence. Moreover, a union may oppose higher sick pay if it … and sick pay, we identify situations in which it will substitute wages for sick pay because adverse absence effects can be …

sickness absence. A pre-determined, piecewise linear policy rule in which the replacement rate is determined by past earnings … statistically significant point estimate of the elasticity of the duration of sickness absence with respect to the replacement rate …

market consequences. We use the Synthetic Control Group Method (SCGM) and the Quarterly Census of Employment and Wages (QCEW …) to estimate the causal effect of mandated sick leave on employment and wages. Our findings do not provide much evidence … that employment or wages were significantly affected by the mandates which typically allow employees to earn one hour of …

trade union members are dismissed less often than non-members, we construct a model to predict how absence behaviour will … in sick pay. In the empirical investigation, we find a positive relationship between trade union membership and absence …-members. These findings suggest that more flexibility in the use of paid absence due to sickness constitutes a private gain from …

of firm value. We find no evidence that these gains come at the expense of employment, workers' wages, or firm profits …