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Trade-offs between health and absenteeism in welfare states: striking the balance

Author

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  • Markussen , Simen

    (Ragnar Frisch Centre for Economic Research)

Abstract

Workers’absenteeism due to illness represents a major concern in several countries. Absenteeism are however not very well understood in economics. This paper presents a model where absenteeism is understood in relation to health. Its main predictions are (i) intermediate welfare state generosity lead to the lowest absence rates as (ii) generous regimes results in excess long-term absenteeism and (iii) strict regimes lead to excess short-term absenteeism. (iv) Maximizing health is not the same as minimizing absenteeism. Finally, these predictions are supported by aggre- gate data for 12 OECD countries.

Suggested Citation

  • Markussen , Simen, 2007. "Trade-offs between health and absenteeism in welfare states: striking the balance," Memorandum 19/2007, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2007_019
    as

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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2007/Memo-19-2007.pdf
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    References listed on IDEAS

    as
    1. Monojit Chatterji & Colin J. Tilley, 2002. "Sickness, absenteeism, presenteeism, and sick pay," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 669-687, October.
    2. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    3. Oddbjørn Raaum & Knut Røed, 2006. "Do Business Cycle Conditions at the Time of Labor Market Entry Affect Future Employment Prospects?," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 193-210, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Absenteeism; Health; Dynamic programming; Welfare state policies;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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