Do interactions between unemployment insurance and sickness insurance affect transitions to employment?
AbstractPrevious research suggests that there are substantial interactions between the unemployment insurance (UI) and the sickness insurance (SI) in Sweden. Moral hazard arises in the interplay between these two social insurance systems, since by reporting sick an unemployed person can postpone the UI expiration date and sometimes also receive considerably higher benefits. This paper examines whether these interactions affect the transition rate from unemployment to employment. To study this question I utilize a reform which greatly reduced the incentives for unemployed persons to transfer to the SI. While there is evidence that this reform substantially lowered the incidence of sick reports among the unemployed, I find no evidence suggesting that the reduced sick report rate in turn affected the transition rate to employment
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Bibliographic InfoPaper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2008:18.
Length: 37 pages
Date of creation: 03 Sep 2008
Date of revision:
Unemployment insurance; sickness insurance; unemployment duration; health; duration analysis;
Other versions of this item:
- Caroline Hall, 2011. "Do Interactions between Unemployment Insurance and Sickness Insurance Affect Transitions to Employment?," LABOUR, CEIS, vol. 25(4), pages 447-467, December.
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-29 (All new papers)
- NEP-HEA-2008-09-29 (Health Economics)
- NEP-IAS-2008-09-29 (Insurance Economics)
- NEP-LAB-2008-09-29 (Labour Economics)
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