Search and competition in the market for sick leaves
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Date
2024
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Abstract
This paper develops a market framework for sick leaves between physicians and patients, where patients imperfectly search for physicians based on their heterogenous quality and endogenous issuance leniency. This framework ratio- nalizes the effects of competition on sick leave issuance as well as the assortative matching between “dishonest” physicians and patients. Using data on sick leaves from Chile’s national insurer, a specification of this framework is estimated and counterfactual scenarios are run. We find that a 64% rise in the fine associated to sick leave issuance would reduce aggregate sick leaves in the market by 32%.
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Tesis (Master Thesis in Economics)--Pontificia Universidad Católica de Chile, 2024