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Absenteeism and productivity: an experience-rating adjustment scheme applied to health insurance in France

Author

Listed:
  • Sébastien Ménard

    (Université du Maine)

  • Coralia Quintero

    (Universidad de Guanajuato)

Abstract

In this paper, we analyze the effects of introducing an experience-rating adjustment scheme on employer’s contributions to health insurance. To this end, we develop a search and matching model in a segmented labor market. In the segment with higher-risk jobs, sick leaves are more frequent and thereby average productivity is lower. The model is calibrated to the French economy. Results from the simulations show that the experience-rating policy slightly improves productivity and employment. In quantitative terms, a 1 % variation in the experience-rating rate induces a 0.48 % reduction in the unemployment spell, a 1.07 % reduction in the days of absence, and a 0.1 % increase in productivity. Finally, this policy also leads to a slightly better economic performance compared to health insurance privatization.

Suggested Citation

  • Sébastien Ménard & Coralia Quintero, 2018. "Absenteeism and productivity: an experience-rating adjustment scheme applied to health insurance in France," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 88, pages 9-50, Enero - J.
    • Handle: RePEc:lde:journl:y:2018:i:88:p:9-50
    DOI: 10.17533/udea.le.n88a01
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    health insurance; experience rating; productivity; search and matching models;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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