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Incentive and spill-over effects of supplementary sickness compensation

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Author Info

  • Hesselius, Patrik

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

  • Persson, Malin

    ()
    (Department of Economics, Uppsala University)

Abstract

In 1998 the Swedish national sickness insurance policy changed to allow additional compensation from e.g. collective agreements after the 90th day of absence without a reduction of the public sickness benefit. We estimate the effects of this policy change on the duration of sickness absence for employees in the municipal sector. After the change in policy, this group received 10 percentage points additional compensation during day 91 to 360 in a sick leave. The results indicate that durations of at least 91 days increased by 4.7 days on average. As a consequence, the cost for the national sickness insurance increased by 3.0 percent. For the supplementary insurance to cover its total cost, insurance premiums should be increased by 22 percent.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2007:16.

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Length: 26 pages
Date of creation: 19 Jun 2007
Date of revision:
Handle: RePEc:hhs:ifauwp:2007_016

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Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
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Web page: http://www.ifau.se/
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Related research

Keywords: Social insurance; sickness absence; collective agreements;

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Cited by:
  1. Nicolas R. Ziebarth, 2009. "Long-Term Absenteeism and Moral Hazard: Evidence from a Natural Experiment," Discussion Papers of DIW Berlin 888, DIW Berlin, German Institute for Economic Research.
  2. 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.
  3. Persson, Malin, 2011. "Substitution between temporary parental leave and sickness absence," Working Paper Series 2011:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Lindgren, Karl-Oskar, 2012. "Workplace size and sickness absence transitions," Working Paper Series 2012:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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