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Assessing the effect of public policy on worker absenteeism

  • Johansson, Per

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Palme, Mårten

    ()

    (Stockholm School of Economics)

We analyze the effect of economic incentives on worker absenteeism, using panel data on work absence for 1990 and 1991 with a sample of 1,396 Swedish blue-collar workers. During this period Sweden implemented major reforms of both its national income replacement program for short-term sickness and income taxes. Both affected the worker's cost of missing work. Our econometric model allows for state-dependent dynamic behavior and control for unobserved heterogeneity. The latter proves to be an important consideration. We find that the cost of being absent significantly affects work absence behavior.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2002:13.

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Length: 29 pages
Date of creation: 30 Jun 2001
Date of revision:
Publication status: Published in Journal of Human Resources , 2002, pages 381-409.
Handle: RePEc:hhs:ifauwp:2002_013
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