RT Journal Article
SR Electronic
T1 Search, Acute Illness, and Absenteeism
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0923-13099R4
DO 10.3368/jhr.0923-13099R4
A1 Kim, Pyoungsik
YR 2026
UL http://jhr.uwpress.org/content/early/2026/03/04/jhr.0923-13099R4.abstract
AB This paper examines the economic costs of absenteeism from acute illness, which reduces labor market participation and burdens workers and firms. I extend a search, matching, and bargaining framework to incorporate medical care use, illness dynamics, health capital, and employer-sponsored health insurance (ESHI). Using data from the Medical Expenditure Panel Survey (MEPS), I estimate the model and find that acute illness lowers productivity, raises medical expenditures, and reduces welfare. Counterfactual analyses show subsidizing health capital improves total welfare. Moreover, while both a universal ESHI mandate and a penaltybased policy expand coverage, the penalty-based approach yields greater welfare gains.