Working Papers, Department of Economics, Lund University
The Effect of Paid Vacation on Health: Evidence from Sweden
Abstract: This study estimates the causal effect of receiving
additional paid vacation days on health. Using register data on the
universe of central government employees in Sweden, I exploit an age-based
rule stipulated in the collective agreement covering these employees.
Identification is achieved by combining a regression discontinuity with a
difference-in-differences design to control for time-invariant differences
between consecutive birth cohorts and isolate the true effect at two
separate discontinuities at ages 30 and 40. The main results indicate no
statistically significant changes in health (as proxied by specialized
outpatient care visits, inpatient care admissions, and long-term sick
leaves) induced by an extension of three paid vacation days at age 30 and
four days at age 40. There is no evidence of significant effects by sex,
being a (lone) parent, education level, or broad group of diagnoses. These
findings challenge the historically grown health argument for additional
paid vacation days.
Keywords: vacation; holiday; working time; health; (follow links to similar papers)
JEL-Codes: I18; J22; J81; M52; (follow links to similar papers)
40 pages, November 7, 2017
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