Guertzgen, Nicole and Hiesinger, Karolin (2025) Dismissal protection and long-term sickness absence: Evidence from a policy change. INDUSTRIAL RELATIONS, 64 (3). pp. 318-342. ISSN 0019-8676, 1468-232X
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This paper studies whether a decline in employment protection reduces workers' long-term sickness absences (of >6 weeks). We exploit exogenous variation from a German policy change that shifted the threshold exempting small establishments from dismissal protection from 5 to 10 workers. Using German register data, we find that the reform significantly reduced employees' transitions into long-term sickness during their second year after being hired. This response is due to a behavioral rather than a compositional effect and is particularly pronounced among the medium-skilled and younger males. Further results indicate that the reform did not alter the probability of involuntary unemployment after sickness.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | EMPLOYMENT PROTECTION; ABSENTEEISM; PRESENTEEISM; WORK; |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Arbeitsmarktforschung (Professor Dr. Nicole Gürtzgen) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 17 Mar 2026 09:38 |
| Last Modified: | 17 Mar 2026 09:38 |
| URI: | https://pred.uni-regensburg.de/id/eprint/64541 |
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