Is paid sick leave bad for business? A systematic review

Vigorous legislative activity both for and against paid sick leave has occurred over the last decade. Although a compelling body of evidence suggests that paid sick leave supports personal and public health goals, a notable barrier in opposition to paid sick leave is apprehension about the potential...

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Bibliographic Details
Published inAmerican journal of industrial medicine Vol. 66; no. 6; pp. 429 - 440
Main Authors Vander Weerdt, Candice, Stoddard‐Dare, Patricia, DeRigne, LeaAnne
Format Journal Article
LanguageEnglish
Published United States Wiley Subscription Services, Inc 01.06.2023
Subjects
absenteeism
Employee benefits
Humans
Injury prevention
job satisfaction
Literature reviews
Meta-analysis
Occupational health
Occupational Injuries
occupational injury
Occupational safety
paid sick leave
Presenteeism
Public health
Public Policy
Reviews
Salaries and Fringe Benefits
Sick Leave
systematic review
turnover
absenteeism
occupational injury
paid sick leave
presenteeism
systematic review
turnover
job satisfaction
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Summary:Vigorous legislative activity both for and against paid sick leave has occurred over the last decade. Although a compelling body of evidence suggests that paid sick leave supports personal and public health goals, a notable barrier in opposition to paid sick leave is apprehension about the potential short‐term and long‐term harms to business. This review critically assesses the relationship between paid sick leave and favorable or unfavorable business conditions. Utilizing the Preferred Reporting Items for Systematic Reviews and Meta‐Analyses (PRISMA) guidelines, we systematically review six research databases between 2000 and November 2022. Of 2664 studies identified, 123 were considered potentially relevant and 43 were included in the review. In addition to absence from work, paid sick leave was associated with favorable business conditions such as increased job satisfaction; improved retention; and reductions in occupational injury, contagion, presenteeism, and death; as well as some measures of firm performance and labor market conditions. Overall, our review discovered more evidence supporting the relationship between paid sick leave and favorable business conditions as compared with evidence that supported unfavorable business conditions. Although more research is needed, these findings can be used to inform firm‐level and public policy decisions about paid sick leave.
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ISSN:0271-3586
1097-0274
DOI:10.1002/ajim.23469