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First Exits From The Swedish Labor Market Due To Disability

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Author Info

  • Andrén, Daniela

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

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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File URL: http://hdl.handle.net/2077/2864
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 49.

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Length: 36 pages
Date of creation: 23 May 2001
Date of revision:
Handle: RePEc:hhs:gunwpe:0049

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: disability pension; sickness spells; long-term sickness; single risk and competing risks models;

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References

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  1. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
  2. Parsons, Donald O, 1984. "Disability Insurance and Male Labor Force Participation: A Response," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 92(3), pages 542-49, June.
  3. Narendranathan, W. & Stewart, M.B., 1989. "Modelling The Probability Of Leaving Unemployment: Competing Risks Models With Flexible Baseline Hazards," The Warwick Economics Research Paper Series (TWERPS) 331, University of Warwick, Department of Economics.
  4. Katz, Lawrence F & Meyer, Bruce D, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(4), pages 973-1002, November.
  5. Bound, John, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Reply," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1427-34, December.
  6. Blau, David & Riphahn, Regina, 1998. "Labour Force transitions of Older Married Couples in Germany," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1911, C.E.P.R. Discussion Papers.
  7. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, Elsevier, vol. 24(1-2), pages 63-132.
  8. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, Elsevier, vol. 18(1), pages 115-168, January.
  9. John Bound, 1989. "The Health and Earnings of Rejected Disability Insurance Applicants," NBER Working Papers 2816, National Bureau of Economic Research, Inc.
  10. Haveman, Robert & Wolfe, Barbara, 2000. "The economics of disability and disability policy," Handbook of Health Economics, Elsevier, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 18, pages 995-1051 Elsevier.
  11. Parsons, Donald O, 1980. "Racial Trends in Male Labor Force Participation," American Economic Review, American Economic Association, American Economic Association, vol. 70(5), pages 911-20, December.
  12. Marten Palme & lngemar Svensson, 1999. "Social Security, Occupational Pensions, and Retirement in Sweden," NBER Chapters, in: Social Security and Retirement around the World, pages 355-402 National Bureau of Economic Research, Inc.
  13. Haveman, Robert H & Wolfe, Barbara L, 1984. "The Decline in Male Labor Force Participation: Comment," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 92(3), pages 532-41, June.
  14. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, Elsevier, vol. 39(3), pages 245-273, August.
  15. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier.
  16. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 88(1), pages 117-34, February.
  17. Parsons, Donald O, 1991. "The Health and Earnings of Rejected Disability Insurance Applicants: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1419-26, December.
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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, Uppsala University, Department of Economics 2003:23, Uppsala University, Department of Economics.

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