The impact of working conditions on sickness absence: a theoretical model and an empirical application to work schedules

This paper explores how poor working conditions impact sickness absence through their effect on health. Our contribution is two-fold. First, we develop a static theoretical model based on the concept of health capital, wherein poor working conditions are partially compensated by higher wages. According to our model, the effect of working conditions on sickness absence is ambiguous. Second, we apply our model to the case of working time arrangements and test the effect of working irregular schedules or work around the clock on sickness absence, using data from the French Labor Force Survey on a specific population (male manual workers in private sector). As heterogeneity may lead to severe bias, we use propensity score matching methods. Our estimates show that working irregular schedules has a significant impact on sickness absence. The results are more mitigated for work around the clock. In any case, the extent crucially depends on age.