The Case for Presenteeism
AbstractCan activation requirements control moral hazard problems in public sickness absence insurance and accelerate recovery? Based on empirical analysis of Norwegian data, we show that it can. Activation requirements not only bring down benefit claims, they also reduce the likelihood that long-term sickness absence leads to inactivity. Our findings show that absentees who are issued graded (partial) absence certificates by their physician have shorter absences and higher subsequent employment rates than they would have had on regular sick leave. We conclude that the activation strategies that in recent years have permeated European and US welfare policy may fruitfully be carried over to sick leave insurance.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5343.
Length: 41 pages
Date of creation: Nov 2010
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Find related papers by JEL classification:
- C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-18 (All new papers)
- NEP-HEA-2010-12-18 (Health Economics)
- NEP-LAB-2010-12-18 (Labour Economics)
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.:
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"Firms' Moral Hazard in Sickness Absences,"
WIFO Working Papers
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- René Böheim & Thomas Leoni, 2011. "Firms' Moral Hazard in Sickness Absences," CESifo Working Paper Series 3595, CESifo Group Munich.
- René Böheim & Thomas Leoni, 2011. "Firms’ moral hazard in sickness absences," Economics working papers 2011-13, Department of Economics, Johannes Kepler University Linz, Austria.
- Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer, vol. 25(4), pages 1287-1306, October.
- Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers 41, Institute for the Study of Labor (IZA).
- Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2012. "The case for presenteeism — Evidence from Norway's sickness insurance program," Journal of Public Economics, Elsevier, vol. 96(11), pages 959-972.
- Markussen, Simen & Røed, Knut, 2014. "The Impacts of Vocational Rehabilitation," IZA Discussion Papers 7892, Institute for the Study of Labor (IZA).
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