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The Case for Presenteeism

Author

Listed:
  • Markussen, Simen

    (Ragnar Frisch Centre for Economic Research)

  • Mykletun, Arnstein

    (Norwegian Institute of Public Health)

  • Røed, Knut

    (Ragnar Frisch Centre for Economic Research)

Abstract

Can 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.

Suggested Citation

  • Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2010. "The Case for Presenteeism," IZA Discussion Papers 5343, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5343
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    References listed on IDEAS

    as
    1. Høgelund, Jan & Holm, Anders & McIntosh, James, 2010. "Does graded return-to-work improve sick-listed workers' chance of returning to regular working hours?," Journal of Health Economics, Elsevier, vol. 29(1), pages 158-169, January.
    2. Markussen, Simen, 2009. "The Effects of Sick-Leaves on Earnings," Memorandum 20/2009, Oslo University, Department of Economics.
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    Cited by:

    1. Markussen, Simen & Røed, Knut, 2014. "The impacts of vocational rehabilitation," Labour Economics, Elsevier, vol. 31(C), pages 1-13.
    2. Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers 41, Institute of Labor Economics (IZA).
    3. René Böheim & Thomas Leoni, 2011. "Firms’ moral hazard in sickness absences," NRN working papers 2011-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    4. René Böheim & Thomas Leoni, 2016. "Disability policies: Reform strategies in a comparative perspective," NBER Working Papers 22206, National Bureau of Economic Research, Inc.
    5. 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.
    6. 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.
    7. Fiona Cocker & Jan M Nicholson & Nicholas Graves & Brian Oldenburg & Andrew J Palmer & Angela Martin & Jenn Scott & Alison Venn & Kristy Sanderson, 2014. "Depression in Working Adults: Comparing the Costs and Health Outcomes of Working When Ill," PLOS ONE, Public Library of Science, vol. 9(9), pages 1-9, September.
    8. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
    9. Carla Sabariego & Michaela Coenen & Elizabeth Ito & Klemens Fheodoroff & Chiara Scaratti & Matilde Leonardi & Anastasia Vlachou & Panayiota Stavroussi & Valentina Brecelj & Dare S. Kovačič & Eva Esteb, 2018. "Effectiveness of Integration and Re-Integration into Work Strategies for Persons with Chronic Conditions: A Systematic Review of European Strategies," IJERPH, MDPI, vol. 15(3), pages 1-34, March.

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    More about this item

    Keywords

    workfare; activation; disability; sick leave;
    All these keywords.

    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

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