Sick of work? The effect of work time reduction on the sickness absenteeism of teachers

Edwin Leuven

This paper investigates how a policy that is aimed to increase the labor force attachment of older teachers affects their labor supply and absenteeism. The policy allows teachers older than 52 to reduce their working hours by 10% at the cost of a 3.5% salary reduction. When teachers turn 56 they can reduce their work load by another 10% at the same cost. This measure therefore introduces a change in teachers budget constraints the moment they turn 52 respectively 56. This paper uses cross-sectional and longitudinal variation to assess the effect of this policy on teachers labor supply and the subsequent effect on absenteeism.

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