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Assessing the Effect of Public Policy on Worker Absenteeism

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  • Per Johansson
  • Mårten Palme

Abstract

We analyze the effect of economic incentives on worker absenteeism, using panel data on work absence for 1990 and 1991 with a sample of 1,396 Swedish blue-collar workers. During this period Sweden implemented major reforms of both its national income replacement program for short-term sickness and income taxes. Both affected the worker's cost of missing work. Our econometric model allows for state-dependent dynamic behavior and control for unobserved heterogeneity. The latter proves to be an important consideration. We find that the cost of being absent significantly affects work absence behavior.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 37 (2002)
Issue (Month): 2 ()
Pages: 381-409

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Handle: RePEc:uwp:jhriss:v:37:y:2002:i:2:p:381-409

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Web page: http://jhr.uwpress.org/

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