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The Effects on Sick Leave of Changes in the Sickness Insurance System Author info | Abstract | Publisher info | Download info | Related research | Statistics Henrekson, Magnus () (Dept. of Economics, Stockholm School of Economics)
Persson, Mats () (Institute of International Economic Studies, IIES)
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In order to get a more complete picture of how labor supply is affected by economic incentives, the effects on absenteeism and not just on contracted hours should be taken into account. In particular, absenteeism due to sick leave can be considerable. In this paper we examine whether the level of sick leave compensation affects sick leave behavior. Using time-series data for Sweden spanning a long period (1955–99) with numerous changes of the compensation level, we generally find strong effects of the expected sign. Reforms implying more generous compensation for sick leave tend to be associated with permanent increases in total sick leave per person employed and vice versa. These findings are reinforced in a panel study covering the 1983–91 period.
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Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number
0444.
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Length: 27 pages
Date of creation: 16 May 2001Date of revision:
08 Aug 2001Publication status: Published in Journal of Labor Economics, 2004, pages 87-113.Handle: RePEc:hhs:hastef:0444Contact details of provider: Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden Phone: +46-(0)8-736 90 00 Fax: +46-(0)8-31 01 57 Email: Web page: http://www.hhs.se/ More information through EDIRC
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Keywords: Absenteeism Labor supply Sick leave Sickness insurance Social security Other versions of this item:
Find related papers by JEL classification: H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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