26 Mar
14:00
Work from Home and Health-Related Absenteeism
We study the effect of working from home (WFH) on health-related absenteeism. We draw on a monthly panel (2018–2023) of nearly 1.9 million workers insured under a major German statutory health insurance fund. Our identification strategy leverages the differential exposure to the unexpected shift to WFH in 2020, resulting in about one-quarter of German employees regularly working remotely today. Specifically, our difference-in-differences design compares sick leave take-up across workers with different WFH potential, i.e., the teleworkability of their occupation in February 2020. Our results imply a nontrivial lasting response to WFH. Compared to the pre-treatment mean, the monthly likelihood of sick leave take-up declined by 3.3% by 2023 due to a 10-percentage-point increase in WFH potential (comparable to a shift from performing and entertainment professions to media documentation and information services). These effects are driven by reductions in respiratory infections and musculoskeletal disorders, such as back pain. The response reflects not only behavioral changes in sick leave take-up, but also genuine health improvements.
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