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The effect of work absence on wages and wage gaps in Sweden

Author

Listed:
  • JÃrgen Hansen

    (IZA, P.O.Box 7240, D-53072 Bonn, Germany)

Abstract

We use unique information about short-term absence from the labor market among Swedish employees to investigate the potential wage loss attributed to this type of absence. A reform in the Swedish health insurance system was used as an instrument. The results indicate that women's wages are significantly reduced by work absence due to own sickness, while absence to care for a sick child has no significant wage effect. For men, we find no support for effects on wages from short-term absence. We also show that the distribution of the gender wage gap depends to a large extent on work absence.

Suggested Citation

  • JÃrgen Hansen, 2000. "The effect of work absence on wages and wage gaps in Sweden," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 45-55.
    • Handle: RePEc:spr:jopoec:v:13:y:2000:i:1:p:45-55
    Note: Received: 29 September 1998/Accepted: 16 April 1999
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    Citations

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    Cited by:

    1. Alexander Ahammer, 2016. "How Physicians Affect Patients’ Employment Outcomes Through Deciding on Sick Leave Durations," CDL Aging, Health, Labor working papers 2016-04, The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria.
    2. Herrmann, Mariesa A. & Rockoff, Jonah E., 2013. "Do menstrual problems explain gender gaps in absenteeism and earnings?," Labour Economics, Elsevier, vol. 24(C), pages 12-22.
    3. Andersen, Signe Hald, 2010. "The cost of sickness: On the effect of the duration of sick leave on post-sick leave earnings," Social Science & Medicine, Elsevier, vol. 70(10), pages 1581-1589, May.
    4. Goerke, Laszlo & Pannenberg, Markus, 2015. "Trade union membership and sickness absence: Evidence from a sick pay reform," Labour Economics, Elsevier, vol. 33(C), pages 13-25.
    5. Pons Rotger, Gabriel & Rosholm, Michael, 2020. "The Role of Beliefs in Long Sickness Absence: Experimental Evidence from a Psychological Intervention," IZA Discussion Papers 13582, Institute of Labor Economics (IZA).
    6. Adrian Chadi & Laszlo Goerke, 2015. "Missing at Work – Sickness-related Absence and Subsequent Job Mobility," IAAEU Discussion Papers 201504, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    7. Thomas Barnay & Julie Favrot & Catherine Pollak, 2015. "L'effet des arrêts maladie sur les trajectoires professionnelles," Économie et Statistique, Programme National Persée, vol. 475(1), pages 135-156.
    8. Vikström, Johan, 2009. "The effect of employer incentives in social insurance on individual wages," Working Paper Series 2009:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Thomas Barnay, 2016. "Health, work and working conditions: a review of the European economic literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(6), pages 693-709, July.
    10. Alexander Ahammer, 2018. "Physicians, sick leave certificates, and patients' subsequent employment outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 27(6), pages 923-936, June.
    11. Husain, Muhammad Jami, 2010. "Contribution of health to economic development: A survey and overview," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-52.
    12. Markussen, Simen, 2009. "The Effects of Sick-Leaves on Earnings," Memorandum 20/2009, Oslo University, Department of Economics.
    13. Amélie Speiser, 2021. "Back to work: the effect of a long-term career interruption on subsequent wages in Switzerland," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 157(1), pages 1-14, December.
    14. Husain, Muhammad Jami, 2009. "Contribution of health to economic development: a survey and overview," Economics Discussion Papers 2009-40, Kiel Institute for the World Economy (IfW Kiel).
    15. Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1287-1306, October.
    16. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2012. "The case for presenteeism — Evidence from Norway's sickness insurance program," Journal of Public Economics, Elsevier, vol. 96(11), pages 959-972.
    17. Andrén, Daniela & Palmer, Edward, 2001. "The Effect Of Sickness On Earnings," Working Papers in Economics 45, University of Gothenburg, Department of Economics.
    18. Chadi, Adrian & Goerke, Laszlo, 2018. "Missing at work – Sickness-related absence and subsequent career events," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 153-176.

    More about this item

    Keywords

    Short-term work absence; gender wage gap;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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