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Does Activating Sick-Listed Workers Work? Evidence from a Randomized Experiment

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  • Rehwald, Kai

    (Aarhus University)

  • Rosholm, Michael

    (Aarhus University)

  • Rouland, Benedicte

    (University of Nantes)

Abstract

Using data from a large-scale randomized controlled trial conducted in Danish job centers, this paper investigates the effects of an intensification of mandatory return-to-work activities on the subsequent labor market outcomes for sick-listed workers. Using variations in local treatment strategies, both between job centers and between randomly assigned treatment and control groups within a given job center, we compare the relative effectiveness of alternative interventions. Our results show that the use of partial sick leave increases the length of time spent in regular employment and non-reliance on benefits, and also reduces the time spent in unemployment. Traditional active labor market programs and the use of paramedical care appear to have no effect at all, or even an adverse effect.

Suggested Citation

  • Rehwald, Kai & Rosholm, Michael & Rouland, Benedicte, 2016. "Does Activating Sick-Listed Workers Work? Evidence from a Randomized Experiment," IZA Discussion Papers 9771, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9771
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    References listed on IDEAS

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    1. Høgelund, Jan & Holm, Anders & McIntosh, James, 2010. "Does graded return-to-work improve sick-listed workers' chance of returning to regular working hours?," Journal of Health Economics, Elsevier, vol. 29(1), pages 158-169, January.
    2. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    3. Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1287-1306, October.
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    6. Markussen, Simen & Mykletun, Arnstein & Røed, Knut, 2012. "The case for presenteeism — Evidence from Norway's sickness insurance program," Journal of Public Economics, Elsevier, vol. 96(11), pages 959-972.
    7. Per Engström & Pathric Hägglund & Per Johansson, 2017. "Early Interventions and Disability Insurance: Experience from a Field Experiment," Economic Journal, Royal Economic Society, vol. 127(600), pages 363-392, March.
    8. Hesselius, Patrik, 2007. "Does sickness absence increase the risk of unemployment?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 288-310, April.
    9. Andrén, Daniela & Svensson, Mikael, 2009. "Part-time sick leave as a treatment method for individuals with musculoskeletal disorders," Working Papers 2009:11, Örebro University, School of Business.
    10. Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
    11. Markussen, Simen & Røed, Knut, 2014. "The impacts of vocational rehabilitation," Labour Economics, Elsevier, vol. 31(C), pages 1-13.
    12. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
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    Cited by:

    1. Marjolijn De Wilde & Sarah Marchal, 2018. "Weighing up work willingness in social assistance: a balancing act on multiple levels," Working Papers 1808, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Kools, Lieke & Koning, Pierre, 2019. "Graded return-to-work as a stepping stone to full work resumption," Journal of Health Economics, Elsevier, vol. 65(C), pages 189-209.
    3. Holm, Anders & Høgelund, Jan & Gørtz, Mette & Rasmussen, Kristin Storck & Houlberg, Helle Sofie Bøje, 2017. "Employment effects of active labor market programs for sick-listed workers," Journal of Health Economics, Elsevier, vol. 52(C), pages 33-44.
    4. De Graaf-Zijl, Marloes & Spijkerman, Marcel & Zwinkels, Wim, 2020. "Long-Term Effects of Individual Placement and Support Services for Disability Benefits Recipients with Severe Mental Illnesses," IZA Discussion Papers 13772, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    long-term sickness; vocational rehabilitation; treatment effects; randomized controlled trial;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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