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Mandatory sick pay provision: a labor market experiment

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The question whether a minimum rate of sick pay should be mandated is much debated. We study the effects of this kind of intervention in an experimental labor market that is rich enough to allow for moral hazard, adverse selection, and crowding out of good intentions to occur. We find that higher si...

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Bibliographische Detailangaben
Weitere Verfasser: Bauernschuster, Stefan (BerichterstatterIn) , Dürsch, Peter (BerichterstatterIn) , Oechssler, Joerg (BerichterstatterIn) , Vadovič, Radovan (BerichterstatterIn)
Dokumenttyp: Article (Journal) Buch/Monographie Arbeitspapier
Sprache:Englisch
Veröffentlicht: Jena Univ. [u.a.] 2009
Schriftenreihe:Jena economics research papers 2009,076
In: Jena economics research papers (2009,076)

Schlagworte:
Arbeitspapier
Graue Literatur
Online-Zugang:Verlag, Volltext: http://zs.thulb.uni-jena.de/servlets/MCRFileNodeServlet/jportal_derivate_00175396/wp_2009_076.pdf
Download aus dem Internet, Stand: 07.10.2009, Volltext: http://hdl.handle.net/10419/32558
Volltext
Verfasserangaben:Stefan Bauernschuster; Peter Duersch; Jörg Oechssler; Radovan Vadovic

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520 |a The question whether a minimum rate of sick pay should be mandated is much debated. We study the effects of this kind of intervention in an experimental labor market that is rich enough to allow for moral hazard, adverse selection, and crowding out of good intentions to occur. We find that higher sick pay is reciprocated by workers through higher effort but only if sick pay is not mandated. We also study adverse selection effects when workers have different probabilities of getting sick and can reject the hypothesis that this leads to market breakdown. Overall, we find that mandating sick pay actually leads to a higher voluntary provision of sick pay by firms. -- sick pay ; sick leave ;experiment ; gift exchange. 
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