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Sick of Being Unemployed? Interactions Between Unemployment and Sickness Insurance in Sweden

  • Larsson, Laura


    (Department of Economics)

Registered author(s):

    This paper examines the incentive effects caused by the interactions between unemployment insurance (UI) and sickness insurance (SI), two important components of Sweden's social insurance system. There are two main topics of interest: how the sickness report rate and the length of the subsequent sick period among the unemployed are affected by (i) the limit of 300 workdays for UI benefits, and (ii) the difference in maximum compensation between UI and SI benefits. Results obtained by duration analysis suggest that sick reports increase as the UI benefit expiration date approaches. There is also evidence of an incentive effect on the sick-report rate because SI offers greater compensation than UI. But neither of these factors seems to have a significant effect on the length of the sick period.

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    Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2002:5.

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    Length: 34 pages
    Date of creation: 18 Mar 2002
    Date of revision:
    Publication status: Forthcoming in The Scandinavian Journal of Economics.
    Handle: RePEc:hhs:uunewp:2002_005
    Contact details of provider: Postal:
    Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden

    Phone: + 46 18 471 25 00
    Fax: + 46 18 471 14 78
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    18. Henrekson, Magnus & Persson, Mats, 2001. "The Effects on Sick Leave of Changes in the Sickness Insurance System," SSE/EFI Working Paper Series in Economics and Finance 0444, Stockholm School of Economics, revised 08 Aug 2001.
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