The need for paid sick days
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Paid sick days are important for workers and their families. Nearly 40 million US workers do not have paid sick time. When sick children cannot stay home because parents lack paid time off, children may be sent to school sick. Losing pay from taking unpaid time off can seriously hurt family budgets. While providing paid sick time costs employers a small percentage of total sales, the benefits to employers include reduced turnover and increased worker loyalty and productivity. A case study in Connecticut found the costs to employers to be very low compared to the benefits.
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Canadian Journal of Economics / Revue canadienne d’économique, Vol. 48, No. 2
May 2015. Printed in Canada / Mai 2015. Imprimé au Canada
0008–4085 / 15 / 437–463 / © Canadian Economics Association
The effect of universal child benefits on
labour supply
Tammy Schirle Department of Economics, Wilfrid Laurier
University
Abstract. Using a difference-in-differences estimator, I find the Canadian Universal Child
Care Benefit has significant negative income effects on the labour supply of married in-
dividuals. The likelihood of lower-educated mothers to participate in the labour force is
reduced 3.2 percentage points when receiving the benefit. Median hours worked per week
among lower-educated mothers is reduced by 1.9 hours. The effects on higher-educated
mothers are substantial, with median hours worked among higher-educated mothers re-
duced by nearly one hour per week. For men, the evidence suggests small but significant
income effects on labour supply, consistent with the literature on labour supply elasticities.
Résumé. Les effets de la prestation universelle pour la garde d’enfants sur l’offre de travail.
À l’aide d’une calibration utilisant les différences dans les différences, on montre que la
PUGE a eu un effet de revenu négatif et significatif sur l’offre de travail des gens mariés.
La probabilité des mères moins instruites à participer à la main d’œuvre est réduite de 3.2
points de pourcentage quand elles reçoivent cette prestation. Le nombre médian d’heures
de travail par semaine chez le même groupe est réduit de 1.9 heures. Pour ce qui est des
mères davantage instruites, les effets sont substantiels : le nombre médian d’heures de
travail par semaine est réduit de près d’une heure. Pour les hommes, les résultats suggèrent
un effet de revenu faible mais significatif sur l’offre de travail qui est en accord avec ce que
suggère la littérature spécialisée sur les élasticités de l’offre de travail.
JEL classification: J22, J18
Data for this study was accessed at the South Western Ontario Research Data Centre as part of
the Statistics Canada Research Data Centres Program. The opinions expressed herein do not
represent the opinions of Statistics Canada. The study benefited from a short-term research
grant provided by Wilfrid Laurier University. I would like to thank Kirill Savine for research
assistance. I would like to thank Hideki Ariizumi, Ana Ferrer, Nicole Fortin, David Green,
Stephen Jones, Shelly Lundberg, René Morissette, Arthur Sweetman, Michael Veall as well as
participants of the Laurier Economics Internal Seminar Series, the CRDCN 2012 National
Conference, the McMaster Economics Seminar Series, the CLSRN 2013 Annual Conference
and the University of Victoria Economics Seminar Series for their comments and suggestions.
I also thank two anonymous reviewers for their valuable suggestions.
Corresponding author: Tammy Schirle, [email protected]
438 T. Schirle
1. Introduction
The effect of child .
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The need for paid sick days
- 1. Paid Sick Days in the United States Work-Life Lunch on Family Economic Security Joint event with The National Partnership for Women & Families June 29th, 2011 Elise Gould Health Policy Research Director
- 3. Nearly 40% of private sector workers lack access to paid sick time
- 4. Access to sick time varies dramatically by job (e.g. industry occupation, wage)
- 5. Access to paid sick days is essential for workers and their families
- 10. Paid sick days can help guarantee a monthly income, which results in greater economic security.
- 11. Losing pay can be a serious blow to a monthly budget
- 14. April 2011 4.6
- 17. Turnover is highly costly to employers (e.g. training and hiring)
- 18. Sick pay can increase loyalty
- 20. Workers show up to work while sick and have greatly reduced productivity
- 21. Sick workers can spread illness
- 24. The proposal included the following:
- 25. An employee earns one hour of sick time for every 40 hours worked
- 26. Up to a maximum of 40 hours per year (5 days)
- 27. Applies only to employers with 50 or more employees
- 28. Estimated costs
- 29. Total sales by industry
- 30. Share of sales devoted to payroll
- 31. Increase in payroll due to paid sick days proposal
- 33. Conditional on historical average days
- 36. The cost of providing sick time is low for employers and the benefits are potentially large