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'Never on a Sunday': Economic incentives and short-term sick leave in Sweden

  • Daniela Andren

Using a longitudinal data for about 1800 persons observed between 1986 and 1991, this study investigates the incentive effects on short-term sickness spells of two important regime changes in the social insurance system in Sweden implemented in 1987 and 1991. The results indicate that the rules influenced people's decisions about when to report the beginning and ending of sickness spells. The 1991 reform, which reduced the replacement rate, had a stronger effect on reducing the duration of short-term absences than the 1987 reform, which restricted the payment of sickness cash benefit to only scheduled workdays.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000295287
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 37 (2005)
Issue (Month): 3 ()
Pages: 327-338

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Handle: RePEc:taf:applec:v:37:y:2005:i:3:p:327-338
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  1. Broström, Göran & Palme, Mårten & Johansson, Per, 2002. "Economic incentives and gender differences in work absence behavior," Working Paper Series 2002:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Magnus Henrekson & Mats Persson, 2004. "The Effects on Sick Leave of Changes in the Sickness Insurance System," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 87-114, January.
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