1. ^aCollege of Law, 425 West Jefferson Street Tallahassee, FL 32301-1609, USA. E-mail: jklick@law.fsu.edu
2. ^bDepartment of Economics, George Mason University, 1D3 Carow Hall, Fairfax, VA 22030, USA. E-mail: tstratma@gmu.edu

Abstract

The health benefits of spas have been hypothesized for centuries. If this hypothesis is correct, spa therapy offers a low cost alternative to more expensive and potentially more invasive medical treatments for ailments such as back pain and arthritis. We use individual-level panel data to isolate the effect of spa therapy on missed workdays and hospital visits in Germany. Simple correlations suggest a self-selection bias — spa visits are associated with increased absenteeism and hospitalization. However, when we exploit the longitudinal nature of the data, we find that spa therapy leads to a statistically significant reduction in both absenteeism and hospitalization, though it is not clear if these health benefits justify the cost of spa therapy.