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Unemployment, Labour Force Composition and Sickness Absence: A Panel Data Study

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Author Info
Askildsen, Jan Erik (Department of Economics, University of Bergen)
Bratberg, Espen () (Department of Economics, University of Bergen)
Nilsen, Øivind Anti (Department of Economics, University of Bergen and IZA, Bonn)

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Abstract

Sickness absence tends to be negatively correlated with unemployment. This may suggest disciplining effects of unemployment but may also reflect changes in the composition of the labour force. A panel of Norwegian register data for the years 1990-1995 is used to analyse sickness absences lasting more than two weeks. We estimate fixed effects models of the probability of absence and the number of days on sick leave conditional on absence. The county unemployment rate is found to affect the probability of absence negatively. When restricting the sample to workers who are present in the whole sample period, the negative relationship between absence and unemployment remains. The evidence on duration goes in the same direction. This indicates that the revealed procyclical variation in sickness absence is not driven by changes in the composition of the labour force.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 466.

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Length: 27 pages
Date of creation: Apr 2002
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Handle: RePEc:iza:izadps:dp466

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Related research
Keywords: sickness absence; unemployment; panel data;

Other versions of this item:

Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Boone, Jan & van Ours, Jan C, 2002. "Cyclical Fluctuations in Workplace Accidents," CEPR Discussion Papers 3655, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Leigh, J. Paul, 1985. "The effects of unemployment and the business cycle on absenteeism," Journal of Economics and Business, Elsevier, vol. 37(2), pages 159-170, May. [Downloadable!] (restricted)
  3. Christopher J. Ruhm, 2000. "Are Recessions Good For Your Health?," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 617-650, May. [Downloadable!] (restricted)
    Other versions:
  4. Riphahn, Regina T. & Thalmaier, Anja, 1999. "Behavioral Effects of Probation Periods: An Analysis of Worker Absenteeism," IZA Discussion Papers 67, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. 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. [Downloadable!] (restricted)
  6. Johansson, Per & Palme, Marten, 1996. "Do economic incentives affect work absence? Empirical evidence using Swedish micro data," Journal of Public Economics, Elsevier, vol. 59(2), pages 195-218, February. [Downloadable!] (restricted)
  7. Arai, Mahmood & Skogman Thoursie, Peter, 2001. "Incentives and Selection in Cyclical Absenteeism," Working Paper Series 167, Trade Union Institute for Economic Research. [Downloadable!]
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  8. Wagstaff, Adam & van Doorslaer, Eddy, 2000. "Chapter 34 Equity in health care finance and delivery," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 34, pages 1803-1862 Elsevier. [Downloadable!] (restricted)
  9. Kenyon, Peter & Dawkins, Peter, 1989. "A Time Series Analysis of Labour Absence in Australia," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 232-39, May. [Downloadable!] (restricted)
  10. Barmby, Tim & Sessions, John G & Treble, John G, 1994. " Absenteeism, Efficiency Wages and Shirking," Scandinavian Journal of Economics, Blackwell Publishing, vol. 96(4), pages 561-66.
  11. Robert Drago & Mark Wooden, 1992. "The determinants of labor absence: Economic factors and workgroup norms across countries," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 45(4), pages 764-778, July.
  12. Allen, Steven G, 1981. "An Empirical Model of Work Attendance," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 77-87, February. [Downloadable!] (restricted)
  13. Solveig Osborg Ose & Jan Morten Dyrstad, 2001. "Non-linear Unemployment Effects in Sickness Absence: Discipline or Composition Effects?," Working Paper Series 2502, Department of Economics, Norwegian University of Science and Technology. [Downloadable!]
  14. McGuire, Thomas G., 2000. "Physician agency," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 9, pages 461-536 Elsevier. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Boone, J. & Ours, J.C. van, 2002. "Cyclical fluctuations in workplace accidents," Discussion Paper 98, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Hesselius, Patrik, 2003. "Does Sick Absence Increase the Risk of Unemployment?," Working Paper Series 2003:15, Uppsala University, Department of Economics. [Downloadable!]
  3. Bertil Holmlund, 2004. "Sickness Absence and Search Unemployment," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. Per Engström & Bertil Holmlund, 2005. "Worker Absenteeism in Search Equilibrium," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Edvard Johansson & Petri Böckerman & Antti Uutela, 2007. "Alchol Consumption and Sickness Absence: Evidence from Panel Data," Discussion Papers 1112, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  6. Røed, Knut & Fevang, Elisabeth, 2005. "Organisational Change, Absenteeism and Welfare Dependency," Memorandum 20/2005, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  7. Böckerman, Petri & Ilmakunnas, Pekka, 2006. "Interaction of job disamenities, job satisfaction, and sickness absences: Evidence from a representative sample of Finnish workers," MPRA Paper 1800, University Library of Munich, Germany. [Downloadable!]
  8. Lindbeck, Assar, 2003. "Improving the Performance of the European Social Model - The Welfare State over the Life Cycle," Working Paper Series 587, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  9. Andreas KUHN & Rafael LALIVE & Josef ZWEIMÜLLER, 2007. "The Public Health Costs of Unemployment," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 07.08, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  10. Nicolas R. Ziebarth, 2009. "Long-Term Absenteeism and Moral Hazard: Evidence from a Natural Experiment," SOEPpapers 172, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  11. René Fahr & Bernd Frick, 2007. "On the Inverse Relationship between Unemployment and Absenteeism: Evidence from Natural Experiments and Worker Heterogeneity," IZA Discussion Papers 3171, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Andreas Kuhn & Rafael Lalive & Josef Zweimüller, 2009. "The Public Health Costs of Job Loss," NRN working papers 2009-13, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
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