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Sick of Being Unemployed? Interactions between Unemployment and Sickness Insurance

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  • Laura Larsson

Abstract

This paper examines the incentive effects of interactions between unemployment insurance (UI) and sickness insurance (SI), two important components of Sweden's social insurance system. The main topic is how the sickness-report rate among the unemployed is affected by (i) the limit of 300 workdays for UI benefits, and (ii) the difference in maximum compensation between UI and SI benefits. Results obtained by duration analysis suggest that sick reports increase as the UI benefit expiration date approaches. There is also evidence of an incentive effect on the sick-report rate because SI offers higher compensation than UI. Copyright The editors of the "Scandinavian Journal of Economics", 2006 .

Suggested Citation

  • Laura Larsson, 2006. "Sick of Being Unemployed? Interactions between Unemployment and Sickness Insurance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 97-113, March.
  • Handle: RePEc:bla:scandj:v:108:y:2006:i:1:p:97-113
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    References listed on IDEAS

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    1. Larsson, Laura, 2002. "Sick of being unemployed? Interactions between unemployment and sickness insurance in Sweden," Working Paper Series 2002:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Larsson, Laura, 2002. "Sick of Being Unemployed? Interactions Between Unemployment and Sickness Insurance in Sweden," Working Paper Series 2002:5, Uppsala University, Department of Economics.
    3. Cassel, Claes-M. & Johansson, Per & Palme, Mårten, 1996. "A Dynamic Discrete Choice Model of blue Collar Worker Absenteeism in Sweden 1991," SSE/EFI Working Paper Series in Economics and Finance 129, Stockholm School of Economics.
    4. Andersson, Fredrik & Vejsiu, Altin, 2001. "Determinants of plant closures in Swedish manufacturing," Working Paper Series 2001:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    Cited by:

    1. Hägglund, Pathric, 2011. "Are there pre-programme effects of active placement efforts? Evidence from a social experiment," Economics Letters, Elsevier, vol. 112(1), pages 91-93, July.
    2. Røed, Knut & Westlie, Lars, 2007. "Unemployment Insurance in Welfare States: Soft Constraints and Mild Sanctions," IZA Discussion Papers 2877, Institute for the Study of Labor (IZA).
    3. Richard V. Burkhauser & Mary C. Daly & Nicolas R. Ziebarth, 2016. "Protecting working-age people with disabilities: experiences of four industrialized nations
      [Absicherung von Personen mit Erwerbsminderung: Erfahrungen aus vier Industrieländern]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(4), pages 367-386, December.
    4. Caroline Hall & Laura Hartman, 2010. "Moral hazard among the sick and unemployed: evidence from a Swedish social insurance reform," Empirical Economics, Springer, vol. 39(1), pages 27-50, August.
    5. Assar Lindbeck & Mårten Palme & Mats Persson, 2016. "Sickness Absence and Local Benefit Cultures," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(1), pages 49-78, January.
    6. Datta Gupta Nabanita & Lau Daniel & Pozzoli Dario, 2016. "The Impact of Education and Occupation on Temporary and Permanent Work Incapacity," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 577-617, April.
    7. Caroline Hall, 2011. "Do Interactions between Unemployment Insurance and Sickness Insurance Affect Transitions to Employment?," LABOUR, CEIS, vol. 25(4), pages 447-467, December.
    8. Lammers, Marloes & Bloemen, Hans & Hochguertel, Stefan, 2013. "Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits," European Economic Review, Elsevier, vol. 58(C), pages 31-57.
    9. Per Johansson & Erica Lindahl, 2013. "Can sickness absence be affected by information meetings? Evidence from a social experiment," Empirical Economics, Springer, vol. 44(3), pages 1673-1695, June.
    10. repec:spr:jopoec:v:30:y:2017:i:4:d:10.1007_s00148-017-0651-2 is not listed on IDEAS
    11. David M. Zimmer, 2015. "Employment Effects Of Health Shocks: The Role Of Fringe Benefits," Bulletin of Economic Research, Wiley Blackwell, vol. 67(4), pages 346-358, October.
    12. Barbara Hofmann, 2014. "Sick of being “Activated?”," Empirical Economics, Springer, vol. 47(3), pages 1103-1127, November.
    13. Erixson, Oscar, 2014. "Health Responses to a Wealth Shock: Evidence from a Swedish Tax Reform," Working Paper Series 1011, Research Institute of Industrial Economics.
    14. van den Berg, Gerard J. & Hofmann, Barbara & Uhlendorff, Arne, 2016. "The Role of Sickness in the Evaluation of Job Search Assistance and Sanctions," IZA Discussion Papers 9626, Institute for the Study of Labor (IZA).
    15. Michael Wiberg & Staffan Marklund & Kristina Alexanderson, 2017. "Transitions Between Compensated Work Disability, Joblessness, and Self-Sufficiency: A Cohort Study 1997–2010 of Those Jobless in 1995," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 36(1), pages 85-107, February.
    16. Gautier, Pieter A. & van der Klaauw, Bas, 2009. "Institutions and labor market outcomes in the Netherlands," Working Paper Series 2009:28, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    17. Allison Thompkins & Todd Honeycutt & Claire Gill & Joseph Mastrianni & Michelle Bailey, 2014. "To Apply or Not to Apply: The Employment and Program Participation of Social Security Disability Insurance Applicants and Non-Applicants," Mathematica Policy Research Reports a1df73c5b1084bfd93ccad9a1, Mathematica Policy Research.
    18. Andersen, Torben M. & Haagen Pedersen, Lars, 2008. "Distribution and labour market incentives in the welfare state – Danish experiences," Working Paper Series 2008:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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