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Non-linear Unemployment Effects in Sickness Absence: Discipline or Composition Effects?

Author

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  • Solveig Osborg Ose

    (Department of Economics, Norwegian University of Science and Technology)

  • Jan Morten Dyrstad

Abstract

By applying Smooth Transition Regressions (Teräsvirta, 1998) we test whether effects on short (STA) and long term (LTA) sickness absence depend on the level of unemployment. The main question is to what extent unemployment affects sickness absence through so-called discipline and/or composition effects. The empirical analysis is carried out on time series data referring to blue collar workers in Norway. For LTA we conclude that only discipline effects are present. Concerning STA, none of these effects seems present among women, whereas both effects may be present among men. Non-linear effects of wage and sick pay scheme changes support these conclusions.

Suggested Citation

  • Solveig Osborg Ose & Jan Morten Dyrstad, 2001. "Non-linear Unemployment Effects in Sickness Absence: Discipline or Composition Effects?," Working Paper Series 2502, Department of Economics, Norwegian University of Science and Technology.
    • Handle: RePEc:nst:samfok:2502
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    File URL: http://www.svt.ntnu.no/iso/WP/2002/25STRsiste.pdf
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    References listed on IDEAS

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    8. Teräsvirta, Timo, 1996. "Smooth Transition Models," SSE/EFI Working Paper Series in Economics and Finance 132, Stockholm School of Economics.
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    Cited by:

    1. Jan Erik Askildsen & Espen Bratberg & Øivind Anti Nilsen, 2005. "Unemployment, labor force composition and sickness absence: a panel data study," Health Economics, John Wiley & Sons, Ltd., vol. 14(11), pages 1087-1101, November.
    2. Lindbeck, Assar & Palme, Mårten & Persson, Mats, 2006. "Job Security and Work Absence: Evidence form a Natural Experiment," Seminar Papers 743, Stockholm University, Institute for International Economic Studies.

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    More about this item

    Keywords

    sickness absence; unemployment; non-linear modelling;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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