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The Rise in Absenteeism: Disentangling the Impacts of Cohort, Age and Time

Author

Listed:
  • Biorn, Erik

    (University of Oslo)

  • Gaure, Simen

    (Ragnar Frisch Centre for Economic Research)

  • Markussen, Simen

    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    (Ragnar Frisch Centre for Economic Research)

Abstract

We examine the remarkable rise in absenteeism among Norwegian employees since the early 1990's, with particular emphasis on disentangling the roles of cohort, age, and time. Based on a fixed effects model, we show that individual age-adjusted absence propensities have risen even more than aggregate absence rates from 1993 to 2005, debunking the popular hypothesis that the rise in absenteeism resulted from the inclusion of new cohorts – with weaker work-norms – into the workforce. We also reject the idea that the rise in absenteeism resulted from more successful integration of workers with poor health; on the contrary, a massive rise in disability rolls during the 1990’s suggest that poor-health workers have left the labor market in unprecedented numbers.

Suggested Citation

  • Biorn, Erik & Gaure, Simen & Markussen, Simen & Røed, Knut, 2010. "The Rise in Absenteeism: Disentangling the Impacts of Cohort, Age and Time," IZA Discussion Papers 5091, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5091
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    References listed on IDEAS

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    1. Assar Lindbeck & Sten Nyberg & Jörgen W. Weibull, 1999. "Social Norms and Economic Incentives in the Welfare State," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 1-35.
    2. Jan Erik Askildsen & Espen Bratberg & Øivind Anti Nilsen, 2005. "Unemployment, labor force composition and sickness absence: a panel data study," Health Economics, John Wiley & Sons, Ltd., vol. 14(11), pages 1087-1101, November.
    3. Lindbeck, Assar, 1995. "Hazardous Welfare-State Dynamics," American Economic Review, American Economic Association, vol. 85(2), pages 9-15, May.
    4. Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1287-1306, October.
    5. Knut Røed & Elisabeth Fevang, 2007. "Organizational Change, Absenteeism, and Welfare Dependency," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    6. Patrick Sevestre & Laszlo Matyas, 2008. "The Econometrics of Panel Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00279977, HAL.
    7. Markussen, Simen & Røed, Knut & Røgeberg, Ole J. & Gaure, Simen, 2011. "The anatomy of absenteeism," Journal of Health Economics, Elsevier, vol. 30(2), pages 277-292, March.
    8. Lusine Lusinyan & Leo Bonato, 2007. "Work Absence in Europe," IMF Staff Papers, Palgrave Macmillan, vol. 54(3), pages 475-538, July.
    9. Bronwyn Hall & Jacques Mairesse & Laure Turner, 2007. "Identifying Age, Cohort, And Period Effects In Scientific Research Productivity: Discussion And Illustration Using Simulated And Actual Data On French Physicists," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(2), pages 159-177.
    10. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053.
    11. Markussen, Simen, 2009. "Closing the Gates? Evidence from a Natural Experiment on Physicians' Sickness Certification," Memorandum 19/2009, Oslo University, Department of Economics.
    12. László Mátyás & Patrick Sevestre (ed.), 2008. "The Econometrics of Panel Data," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75892-1, July-Dece.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The mysterious rise of absenteeism in Norway
      by Economic Logician in Economic Logic on 2010-08-31 18:56:00

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    Cited by:

    1. Simen Markussen & Knut Røed, 2015. "Social Insurance Networks," Journal of Human Resources, University of Wisconsin Press, vol. 50(4), pages 1081-1113.
    2. Caroline Krafft, 2020. "Why is fertility on the rise in Egypt? The role of women’s employment opportunities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1173-1218, October.
    3. Biørn, Erik, 2013. "Age-Cohort-Time Effects in Sickness Absence: Exploring a Large Data Set by Polynomial Regression," Memorandum 19/2013, Oslo University, Department of Economics.
    4. Biørn, Erik, 2013. "Identifying Age-Cohort-Time Effects, Their Curvature and Interactions from Polynomials: Examples Related to Sickness Absence," Memorandum 08/2013, Oslo University, Department of Economics.
    5. Karsten Marshall Elseth Rieck & Kjetil Telle, 2012. "Sick leave before, during and after pregnancy," Discussion Papers 690, Statistics Norway, Research Department.

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    More about this item

    Keywords

    endogenous selection; sickness absence; fixed effects logit; multicollinearity;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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