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Assessing the effect of a compulsory sickness insurance on worker absenteeism

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Listed:
  • Johansson, Per

    () (T&S, Dalarna University)

  • Palme, Mårten

    () (Dept. of Economic Statistics, Stockholm School of Economics)

Abstract

The effect of economic incentives on worker absenteeism is analyzed using panel data on work absence behavior for each day during 1990 and 1991 (i.e. 730 observations in the time dimension) for a representative sample of 1,396 Swedish blue collar workers. During the observed time period, a major reform of the sickness insurance as well as a tax reform were implemented, both of which affected the worker's cost of being absent from work. We differentiate between the dynamic dependence conditional on whether the worker is in the work absence state versus in the work presence state. We also control for unobserved heterogeneity. The results show that the cost of being absent has a significant effect on work absence behavior and the importance of considering unobserved heterogeneity when modeling individual work absence behavior.

Suggested Citation

  • 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.
  • Handle: RePEc:hhs:hastef:0287
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    Citations

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    Cited by:

    1. Josephson, Malin & Karnehed, Nina & Lindahl, Erica & Persson, Helena, 2013. "Intergenerational transmission of long-term sick leave," Working Paper Series 2013:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Hesselius, Patrik & Johansson, Per & Nilsson, Peter, 2009. "Sick of your colleagues' absence?," Working Paper Series 2009:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Bokenblom, Mattias & Ekblad, Kristin, 2007. "Sickness Absence and Peer Effects -Evidence from a Swedish Municipality," Working Papers 2007:11, Örebro University, School of Business, revised 14 Sep 2010.
    4. Fevang, Elisabeth & Hardoy, Inés & Røed, Knut, 2013. "Getting Disabled Workers Back to Work: How Important Are Economic Incentives?," IZA Discussion Papers 7137, Institute for the Study of Labor (IZA).
    5. Per Engström & Per Johansson, 2012. "The medical doctors as gatekeepers in the sickness insurance?," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3615-3625, October.
    6. Olsson, Martin & Skogman Thoursie, Peter, 2010. "Insured by the partner?," Working Paper Series 2010:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Tim A. Barmby & Marco G. Ercolani & John G. Treble, 2002. "Sickness Absence: An International Comparison," Economic Journal, Royal Economic Society, vol. 112(480), pages 315-331, June.
    8. Pathric Hägglund, 2013. "Do time limits in the sickness insurance system increase return to work?," Empirical Economics, Springer, vol. 45(1), pages 567-582, August.
    9. Hesselius, Patrik, 2003. "Does Sick Absence Increase the Risk of Unemployment?," Working Paper Series 2003:15, Uppsala University, Department of Economics.
    10. Aaberge, Rolf & Flood, Lennart, 2008. "Evaluation of an In-Work Tax Credit Reform in Sweden: Effects on Labor Supply and Welfare Participation of Single Mothers," IZA Discussion Papers 3736, Institute for the Study of Labor (IZA).
    11. Andrén, Daniela, 2001. "Short-Term Absenteeism Due To Sickness: The Swedish Experience, 1986 - 1991," Working Papers in Economics 46, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    Work absence; panel data; discrete choice;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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