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The Case for Presenteeism

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Author Info

  • 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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5343.

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Length: 41 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5343

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Keywords: workfare; activation; disability; sick leave;

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References

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  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, Elsevier, vol. 29(1), pages 158-169, January.
  2. Markussen, Simen, 2009. "The Effects of Sick-Leaves on Earnings," Memorandum, Oslo University, Department of Economics 20/2009, Oslo University, Department of Economics.
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Citations

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Cited by:
  1. Markussen, Simen & Røed, Knut, 2014. "The Impacts of Vocational Rehabilitation," IZA Discussion Papers 7892, Institute for the Study of Labor (IZA).
  2. René Böheim & Thomas Leoni, 2011. "Firms' Moral Hazard in Sickness Absences," CESifo Working Paper Series 3595, CESifo Group Munich.
  3. Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer, Springer, vol. 25(4), pages 1287-1306, October.
  4. Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers, Institute for the Study of Labor (IZA) 41, Institute for the Study of Labor (IZA).
  5. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2012. "The case for presenteeism — Evidence from Norway's sickness insurance program," Journal of Public Economics, Elsevier, Elsevier, vol. 96(11), pages 959-972.

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