This paper analyses the causal effects of weaker dismissal protection on the incidence of long-term sickness ( six weeks). We exploit a German policy change, which shifted the threshold exempting small establishments from dismissal protection from five to ten workers. Using administrative data,...

This paper analyses the causal effects of weaker dismissal protection on the incidence of long-term sickness ( six weeks). We exploit a German policy change, which shifted the threshold exempting small establishments from dismissal protection from five to ten workers. Using administrative data,...

Involuntary absence is often seen as an exogenous factor, but firms can take actions to reduceit. In this paper the notion that firms, especially SMEs, are faced with a single decisionwhether or not to undertake these actions is questioned. A firm model on involuntary absencemeasures is...