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Sickness Absence and Local Benefit Cultures

  • Lindbeck, Assar

    ()

    (Stockholm University)

  • Palme, Mårten

    ()

    (Stockholm University)

  • Persson, Mats

    ()

    (IIES, Stockholm University)

In many countries, sickness absence financed by generous insurance benefits has become an important concern in the policy debate. It turns out that there are strong variations in absence behavior between local geographical areas, and it has been difficult to explain these variations by observable socioeconomic factors. In this paper we investigate whether such variation is related to group effects in the form of social interaction among individuals within neighborhoods. Well-known methodological problems arise when trying to answer such a question. A special feature of our attempt to deal with these problems is that we adopt several alternative approaches to identify group effects. We base the study on a rich set of Swedish panel data, and we find indications of group effects in each one of our approaches.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6245.

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Length: 32 pages
Date of creation: Dec 2011
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Handle: RePEc:iza:izadps:dp6245
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  16. Lindbeck, Assar, 1995. "Welfare State Disincentives with Endogenous Habits and Norms," Working Paper Series 441, Research Institute of Industrial Economics.
  17. Per Pettersson-Lidbom & Peter Skogman Thoursie, 2013. "Temporary Disability Insurance and Labor Supply: Evidence from a Natural Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(2), pages 485-507, 04.
  18. Engström, Per & Johansson, Per, 2009. "The medical doctors as gatekeepers in the sickness insurance?," Working Paper Series, Center for Labor Studies 2010:4, Uppsala University, Department of Economics.
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  24. Johansson, Per & Palme, Marten, 2005. "Moral hazard and sickness insurance," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1879-1890, September.
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