Causal effects of Economic Incentives on Absence from Work: A Duration Analysis Using Fixed Effects
AbstractThe incidence and duration of work-absence spells for a sample of Swedish blue-collar workers in 1990 and 1991 are analyzed using the Kaplan-Meier non-parametric estimator, discrete-time hazard regression as well as stratified Cox regression. We focus on the effect of economic incentives, i.e., costs associated with absence from work and individual income, as well as gender differences in work absence behavior. In this context we analyze the effect of a reform of the compulsory sickness insurance scheme, i.e., a decrease in the replacement level, that took place in Sweden in March 1991. Special attention is devoted to gender differences in work-absence behavior. We find that it is important to consider unobserved heterogeneity and state dependence in the estimations. The results also show that economic incentives seem to matter for the incidence of work-absence. Gender differences in the way economic incentives affect work-absence behavior, rather than differences in the measured variables, appear to be the predominant factor in explaining the higher work-absence rate of females.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 465.
Length: 50 pages
Date of creation: 15 Oct 2001
Date of revision: Jun 2002
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Discrete time Cox regression; Sickness insurance; Stratified Cox Regression;
Find related papers by JEL classification:
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-01-22 (All new papers)
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- Henrekson, Magnus & Persson, Mats, 2001.
"The Effects on Sick Leave of Changes in the Sickness Insurance System,"
Working Paper Series in Economics and Finance
0444, Stockholm School of Economics, revised 08 Aug 2001.
- Magnus Henrekson & Mats Persson, 2004. "The Effects on Sick Leave of Changes in the Sickness Insurance System," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 87-114, January.
- Henrekson, Magnus & Persson, Mats, 2001. "The Effects on Sick Leave of Changes in the Sickness Insurance System," Seminar Papers 697, Stockholm University, Institute for International Economic Studies.
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