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Organisational Change, Absenteeism and Welfare Dependency

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Author Info

  • Røed, Knut

    ()
    (The Ragnar Frisch Centre for Economic Research)

  • Fevang, Elisabeth

    ()
    (The Ragnar Frisch Centre for Economic Research)

Abstract

We show that recent attempts to reorganise and cut costs in the Norwegian health care and social services sectors have had the unintended side effects of raising the level of sickness absence and disability among the employees, and that these effects have persisted several years after completion of the reorganisation processes. Since a substantial proportion of the resulting costs are external to the decision-makers, we suspect that the pace of change may have been excessively high. Changes that were efficient from each service provider’s point of view may have been inefficient from a social and a public-finance point of view.

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File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2005/Memo-20-2005.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 20/2005.

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Length: 41 pages
Date of creation: 08 Aug 2005
Date of revision:
Handle: RePEc:hhs:osloec:2005_020

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Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
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Keywords: Absenteeism; hazard rate model; NPMLE;

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References

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  1. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA).
  2. Askildsen, Jan Erik & Bratberg, Espen & Nilsen, Øivind Anti, 2002. "Unemployment, labour force composition and sickness absence. A panel data study," Working paper Series 0205, Department of Economics, University of Bergen.
  3. Monojit Chatterji & Colin J. Tilley, 2002. "Sickness, absenteeism, presenteeism, and sick pay," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 669-687, October.
  4. Lindbeck, Assar, 1995. " Welfare State Disincentives with Endogenous Habits and Norms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 477-94, December.
  5. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
  6. Ferrie, Jane E. & Shipley, Martin J. & Marmot, Michael G. & Stansfeld, Stephen & Smith, George Davey, 1998. "The health effects of major organisational change and job insecurity," Social Science & Medicine, Elsevier, vol. 46(2), pages 243-254, January.
  7. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  8. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  9. Brown, Claire & Arnetz, Bengt & Petersson, Ove, 2003. "Downsizing within a hospital: cutting care or just costs?," Social Science & Medicine, Elsevier, vol. 57(9), pages 1539-1546, November.
  10. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The identifiability of the mixed proportional hazards competing risks model," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(3), pages 701-710.
  11. Goffe, William L. & Ferrier, Gary D. & Rogers, John, 1994. "Global optimization of statistical functions with simulated annealing," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 65-99.
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Citations

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Cited by:
  1. Mari Rege & Kjetil Telle & Mark Votruba, 2012. "Social Interaction Effects in Disability Pension Participation: Evidence from Plant Downsizing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1208-1239, December.
  2. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
  3. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute for the Study of Labor (IZA).
  4. Carlsen, Benedicte, 2012. "From absence to absenteeism? A qualitative cross case study of teachers’ views on sickness absence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 129-136.
  5. Bernstrøm, Vilde Hoff, 2013. "The relationship between three stages of job change and long-term sickness absence," Social Science & Medicine, Elsevier, vol. 98(C), pages 239-246.

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