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Trade-offs between health and absenteeism in welfare states: striking the balance

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  • Markussen , Simen

    ()
    (Ragnar Frisch Centre for Economic Research)

Abstract

Workers’absenteeism due to illness represents a major concern in several countries. Absenteeism are however not very well understood in economics. This paper presents a model where absenteeism is understood in relation to health. Its main predictions are (i) intermediate welfare state generosity lead to the lowest absence rates as (ii) generous regimes results in excess long-term absenteeism and (iii) strict regimes lead to excess short-term absenteeism. (iv) Maximizing health is not the same as minimizing absenteeism. Finally, these predictions are supported by aggre- gate data for 12 OECD countries.

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File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2007/Memo-19-2007.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 19/2007.

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Length: 32 pages
Date of creation: 18 Sep 2007
Date of revision:
Handle: RePEc:hhs:osloec:2007_019

Contact details of provider:
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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Related research

Keywords: Absenteeism; Health; Dynamic programming; Welfare state policies;

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  1. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
  2. 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.
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