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The Effect of Sickness History on Earnings in Sweden

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  • D Andren
  • E Palmer

Abstract

This study examines whether sickness history affects annual earnings and/or hourly wages in Sweden. If poor health makes people less productive, previous sickness is expected to have a negative effect on hourly wages. If poor health reduces people's working capacity, but not their productivity, it is expected to decrease the hours worked, which implies lower annual earnings and no change in their hourly wage. The results indicate that people who are healthy in the current year but have a longer spell of sickness in previous years have lower earnings than persons who have no record of long-term sickness, and that the effect goes through hours of work rather than the wage rate.

Suggested Citation

  • D Andren & E Palmer, 2008. "The Effect of Sickness History on Earnings in Sweden," Economic Issues Journal Articles, Economic Issues, vol. 13(1), pages 1-24, March.
    • Handle: RePEc:eis:articl:108andren
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    References listed on IDEAS

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    1. Thomas DeLeire & Willard Manning, 2004. "Labor market costs of illness: prevalence matters," Health Economics, John Wiley & Sons, Ltd., vol. 13(3), pages 239-250, March.
    2. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
    3. Andrén, Daniela & Palmer, Edward, 2001. "The Effect Of Sickness On Earnings," Working Papers in Economics 45, University of Gothenburg, Department of Economics.
    4. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
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    Cited by:

    1. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.

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