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Labour market effects of activating sick-listed workers

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  • Rehwald, Kai
  • Rosholm, Michael
  • Rouland, Bénédicte

Abstract

Using data from a large-scale randomized controlled trial conducted in Danish job centers, this paper investigates the effects of activating sick-listed workers on subsequent labour market outcomes. Comparing treated and controls, we find an overall unfavourable effect on subsequent labour market outcomes. Using variations in activation regimes (both between job centers and between randomly assigned treatment and control groups within a given job center) as an instrument for participating in a specific activity, we compare the relative effectiveness of alternative activation strategies. Our results show that the use of partial sick leave increases the length of time spent in regular employment, and also reduces the time spent in unemployment and in early retirement. Traditional active labour market programs and the use of paramedical care appear to have no effect at all, or even an adverse effect.

Suggested Citation

  • Rehwald, Kai & Rosholm, Michael & Rouland, Bénédicte, 2018. "Labour market effects of activating sick-listed workers," Labour Economics, Elsevier, vol. 53(C), pages 15-32.
    • Handle: RePEc:eee:labeco:v:53:y:2018:i:c:p:15-32
    DOI: 10.1016/j.labeco.2018.04.003
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    3. von Simson Kristine & Hardoy Inés, 2020. "Tackling disabilities in young age—Policies that work," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-27, March.

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    More about this item

    Keywords

    Long-term sickness; Activation strategy; Treatment effects; Field experiment;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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