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Organisational Change, Absenteeism and Welfare Dependency

Author

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  • Røed, Knut

    (The Ragnar Frisch Centre for Economic Research)

  • Fevang, Elisabeth

    (The Ragnar Frisch Centre for Economic Research)

Abstract

We show that recent attempts to reorganise and cut costs in the Norwegian health care and social services sectors have had the unintended side effects of raising the level of sickness absence and disability among the employees, and that these effects have persisted several years after completion of the reorganisation processes. Since a substantial proportion of the resulting costs are external to the decision-makers, we suspect that the pace of change may have been excessively high. Changes that were efficient from each service provider’s point of view may have been inefficient from a social and a public-finance point of view.

Suggested Citation

  • Røed, Knut & Fevang, Elisabeth, 2005. "Organisational Change, Absenteeism and Welfare Dependency," Memorandum 20/2005, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2005_020
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    References listed on IDEAS

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    1. Sigursteinsdóttir, Hjördís & Rafnsdóttir, Gudbjörg Linda, 2015. "Sickness and sickness absence of remaining employees in a time of economic crisis: A study among employees of municipalities in Iceland," Social Science & Medicine, Elsevier, vol. 132(C), pages 95-102.
    2. Dale-Olsen, Harald, 2019. "Creative Destruction, Social Security Uptake and Union Networks," IZA Discussion Papers 12546, IZA Network @ LISER.
    3. Bernstrøm, Vilde Hoff, 2013. "The relationship between three stages of job change and long-term sickness absence," Social Science & Medicine, Elsevier, vol. 98(C), pages 239-246.
    4. Carlsen, Benedicte, 2012. "From absence to absenteeism? A qualitative cross case study of teachers’ views on sickness absence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 129-136.
    5. Stefanie Thönnes & Stefan Pichler, 2019. "Sickness absence and unemployment revisited," Working Papers Dissertations 53, Paderborn University, Faculty of Business Administration and Economics.
    6. Østhus, Ståle & Mastekaasa, Arne, 2010. "The impact of downsizing on remaining workers' sickness absence," Social Science & Medicine, Elsevier, vol. 71(8), pages 1455-1462, October.
    7. Mundbjerg Eriksen, Tine L. & Hogh, Annie & Hansen, Åse Marie, 2016. "Long-term consequences of workplace bullying on sickness absence," Labour Economics, Elsevier, vol. 43(C), pages 129-150.
    8. Ödegaard, Fredrik & Roos, Pontus, 2012. "Measuring workers' health and psychosocial work-environment on firm productivity," Working Paper Series 2012:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Inés Hardoy & Pål Schøne, 2014. "Displacement and household adaptation: insured by the spouse or the state?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 683-703, July.
    10. Ståle Østhus, 2007. "For better or worse? Workplace changes and the health and well-being of Norwegian workers," Work, Employment & Society, British Sociological Association, vol. 21(4), pages 731-750, December.
    11. Andreassen Leif & Kornstad Tom, 2010. "What determines transitions to sick leave?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201012, University of Turin.
    12. Erik Biørn & Simen Gaure & Simen Markussen & Knut Røed, 2013. "The rise in absenteeism: disentangling the impacts of cohort, age and time," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1585-1608, October.
    13. Mari Rege & Kjetil Telle & Mark Votruba, 2012. "Social Interaction Effects in Disability Pension Participation: Evidence from Plant Downsizing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1208-1239, December.
    14. Vedrana Čikeš & Helga Maškarin Ribarić & Kristina Črnjar, 2018. "The Determinants and Outcomes of Absence Behavior: A Systematic Literature Review," Social Sciences, MDPI, vol. 7(8), pages 1-26, July.
    15. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, IZA Network @ LISER.
    16. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
    17. Bratberg, Espen & Monstad, Karin, 2015. "Worried sick? Worker responses to a financial shock," Labour Economics, Elsevier, vol. 33(C), pages 111-120.
    18. Joyce Burnette, 2021. "Missing work: absenteeism at Pepperell Manufacturing Co. in 1883," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(3), pages 755-786, September.
    19. Jon H. Fiva & Jo Thori Lind & Bjørn-Atle Reme & Henning Øien, 2025. "Sick of Politics?," CESifo Working Paper Series 11881, CESifo.

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    Keywords

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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