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Do time limits in the sickness insurance system increase return to work?

  • Pathric Hägglund

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    This article analyzes the effect of stricter enforcement of the eligibility criteria in the Swedish sickness insurance (SI) system. In 2008, time-restricted assessments of the individual’s working capacity on the 91st and 181st sick day was introduced. Taking advantage of the quasi-experimental feature of the intervention, I find a large and significant increased exit rate around the 181-day assessment. The impact is the result of longer spells outside SI-benefits, indicating that the stricter rules create disincentives to report sick. Copyright Springer-Verlag 2013

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    File URL: http://hdl.handle.net/10.1007/s00181-012-0618-9
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    Article provided by Springer in its journal Empirical Economics.

    Volume (Year): 45 (2013)
    Issue (Month): 1 (August)
    Pages: 567-582

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    Handle: RePEc:spr:empeco:v:45:y:2013:i:1:p:567-582
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    1. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
    2. Daniel H. Klepinger & Terry R. Johnson & Jutta M. Joesch, 2002. "Effects of unemployment insurance work-search requirements: The Maryland experiment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(1), pages 3-22, October.
    3. Carling, Kenneth & Edin, Per-Anders & Harkman, Anders & Holmlund, Bertil, 1996. "Unemployment duration, unemployment benefits, and labor market programs in Sweden," Journal of Public Economics, Elsevier, vol. 59(3), pages 313-334, March.
    4. Johansson, Per & Palme, Mårten, 1998. "Assessing the effect of a compulsory sickness insurance on worker absenteeism," SSE/EFI Working Paper Series in Economics and Finance 287, Stockholm School of Economics.
    5. Johansson, Per & Palme, Marten, 1996. "Do economic incentives affect work absence? Empirical evidence using Swedish micro data," Journal of Public Economics, Elsevier, vol. 59(2), pages 195-218, February.
    6. Hesselius, Patrik & Johansson, Per & Nilsson, Peter, 2009. "Sick of Your Colleagues' Absence?," IZA Discussion Papers 3960, Institute for the Study of Labor (IZA).
    7. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
    8. Johansson, Per & Palme, Marten, 2005. "Moral hazard and sickness insurance," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1879-1890, September.
    9. Hesselius, Patrik & Persson, Malin, 2007. "Incentive and spill-over effects of supplementary sickness compensation," Working Paper Series 2007:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Barr, Nicholas, 2004. "Economics of the Welfare State," OUP Catalogue, Oxford University Press, edition 4, number 9780199264971, March.
    11. Terry R. Johnson & Daniel H. Klepinger, 1994. "Experimental Evidence on Unemployment Insurance Work-Search Policies," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 665-717.
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