Judit Vall awarded Leonardo Grant by BBVA Foundation to study the effects of the economic crisis on work leaves in Spain

The UB School of Economics and Barcelona Institute of Economics (IEB) researcher, Judit Vall, has been awarded a Leonardo Grant 2019 by the BBVA Foundation. This grant will allow her to investigate the deterrent effects of the economic crisis on sick leaves and to determine what groups of workers are the most affected by this change of behaviour. The research project “Bajas laborales y ciclo económico” will be developed during 18 months and will receive €40,000 of funding.

The Leonardo Scholarships by the BBVA Foundation are intended to support personal projects of researchers and cultural creators in intermediate stages of their careers, between 30 and 45 years, which demonstrate a highly innovative scientific, technological or cultural production. The funded projects can be developed during a period of between 6 and 18 months.

The conclusions of this study will contribute to ensure the sustainability of the public budget, as sick leaves are financed to a larger extent through public funds. The study will also quantify the magnitude of the moral hazard and identify the sectors most affected by it, as it is a problem that affects the productivity of the economy.

The expected results of the project are the quantification of moral hazard in work leave in Spain. At the same time, the project will document the existence and evolution of moral hazard in the work leave in times of economic growth, as well as in times of recession, as the reduction in work leaves in times of crisis may not be caused by the previous existence of moral hazard but by the fear of being fired in a situation of economic recession.

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