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Moving between Welfare Payments. The Case of Sickness Insurance for the Unemployed

Author

Listed:
  • Henningsen, Morten

    () (The Ragnar Frisch Centre for Economic Research)

Abstract

This study describes the probability of transition from unemployment with unemployment insurance (UI) to sickness with sickness insurance (SI), using a grouped proportional hazard duration model and 9 years of monthly panel data. The combination of duration-limited UI and the fact that SI rights do not depend on remaining UI, creates an incentive to apply for SI, which is strongest immediately before UI expires. Estimation shows that the sickness hazard increases by around 50% when UI is about to end. Data on the sickness spells reveal that those who were given SI shortly before UI expired, are more likely to fully exploit the maximum of 12 months SI.

Suggested Citation

  • Henningsen, Morten, 2006. "Moving between Welfare Payments. The Case of Sickness Insurance for the Unemployed," Memorandum 04/2006, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2006_004
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2006/Memo-04-2006.pdf
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    Cited by:

    1. Per Johansson & Erica Lindahl, 2013. "Can sickness absence be affected by information meetings? Evidence from a social experiment," Empirical Economics, Springer, vol. 44(3), pages 1673-1695, June.

    More about this item

    Keywords

    Unemployment insurance; sickness insurance; unemployment duration;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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