Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2017:13: The Effect of Paid Vacation on Health: Evidence from Sweden

Thomas Hofmarcher ()
Additional contact information
Thomas Hofmarcher: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, 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

JEL-codes: I18; J22; J81; M52

40 pages, November 7, 2017

Full text files

wp17_13.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to David Edgerton ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-06 14:12:43.