Plausibly Exogenous [1785] - Sick Leave (12/22/2024)

LHS Variable
Sickness absence behavior and labor costs

RHS Variable
Statutory sick pay levels

Source of Exogenous Variation
German federal law reduced the legal obligation of German employers to provide 100% continued wage pay for up to six weeks per sickness episode.

- Ziebarth and Karlsson (2010), “A natural experiment on sick pay cuts, sickness absence, and labor costs”