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Assessing the effect of a compulsory sickness insurance on worker absenteeism

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Author Info

  • Johansson, Per

    ()
    (T&S, Dalarna University)

  • Palme, Mårten

    ()
    (Dept. of Economic Statistics, Stockholm School of Economics)

Abstract

The effect of economic incentives on worker absenteeism is analyzed using panel data on work absence behavior for each day during 1990 and 1991 (i.e. 730 observations in the time dimension) for a representative sample of 1,396 Swedish blue collar workers. During the observed time period, a major reform of the sickness insurance as well as a tax reform were implemented, both of which affected the worker's cost of being absent from work. We differentiate between the dynamic dependence conditional on whether the worker is in the work absence state versus in the work presence state. We also control for unobserved heterogeneity. The results show that the cost of being absent has a significant effect on work absence behavior and the importance of considering unobserved heterogeneity when modeling individual work absence behavior.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 287.

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Length: 39 pages
Date of creation: 09 Dec 1998
Date of revision:
Publication status: Forthcoming in Journal of Human Resources.
Handle: RePEc:hhs:hastef:0287

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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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Related research

Keywords: Work absence; panel data; discrete choice;

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Cited by:
  1. Hesselius, Patrik & Johansson, Per & Nilsson, Peter, 2009. "Sick of Your Colleagues' Absence?," IZA Discussion Papers 3960, Institute for the Study of Labor (IZA).
  2. Josephson, Malin & Karnehed, Nina & Lindahl, Erica & Persson, Helena, 2013. "Intergenerational transmission of long-term sick leave," Working Paper Series 2013:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Fevang, Elisabeth & Hardoy, Inés & Røed, Knut, 2013. "Getting Disabled Workers Back to Work: How Important Are Economic Incentives?," IZA Discussion Papers 7137, Institute for the Study of Labor (IZA).
  4. Andrén, Daniela, 2001. "Short-Term Absenteeism Due To Sickness: The Swedish Experience, 1986 - 1991," Working Papers in Economics 46, University of Gothenburg, Department of Economics.
  5. Bokenblom, Mattias & Ekblad, Kristin, 2007. "Sickness Absence and Peer Effects -Evidence from a Swedish Municipality," Working Papers 2007:11, Örebro University, School of Business, revised 19 Feb 2008.
  6. Hesselius, Patrik, 2003. "Does Sick Absence Increase the Risk of Unemployment?," Working Paper Series 2003:15, Uppsala University, Department of Economics.
  7. Aaberge, Rolf & Flood, Lennart, 2008. "Evaluation of an In-Work Tax Credit Reform in Sweden: Effects on Labor Supply and Welfare Participation of Single Mothers," IZA Discussion Papers 3736, Institute for the Study of Labor (IZA).
  8. Tim A. Barmby & Marco G. Ercolani & John G. Treble, 2002. "Sickness Absence: An International Comparison," Economic Journal, Royal Economic Society, vol. 112(480), pages F315-F331, June.
  9. Pathric Hägglund, 2013. "Do time limits in the sickness insurance system increase return to work?," Empirical Economics, Springer, vol. 45(1), pages 567-582, August.

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