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First Exits from the Swedish Labor Market Due to Disability

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  • Daniela Andrén

Abstract

The number of disability exits has been increasing in recent years, raising questions both about the well being of affected individuals, and about how to finance the related disability pensions. Using a longitudinal database owned by the Swedish National Social Insurance Board, this study analyzes the risk to exit into disability at a certain age, assuming that people remained in the labor force until that age. The estimates show that it was more than 7% higher for each 100 days of sickness, but was lower with each additional sickness spell. It was also higher for increments of 1% in the regional unemployment rate. These results suggest that more resources should be allocated for prevention, improving working conditions and designing the tasks of each job so as avoid overuse of employees working capacity.
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  • Daniela Andrén, 2008. "First Exits from the Swedish Labor Market Due to Disability," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(2), pages 227-238, April.
    • Handle: RePEc:kap:poprpr:v:27:y:2008:i:2:p:227-238
    DOI: 10.1007/s11113-007-9061-6
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    Cited by:

    1. Hallberg, Daniel, 2003. "A Description of Routes out of the Labor Force for Workers in Sweden," Working Paper Series 2003:23, Uppsala University, Department of Economics.

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    More about this item

    Keywords

    Disability pension; Long-term sickness; Single risk model; Competing risks model;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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