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Who should monitor job sick leave?

Author

Listed:
  • Carlo Alberto Biscardo

    (INPS, Verona)

  • Alessandro Bucciol

    (Department of Economics (University of Verona))

  • Paolo Pertile

    (Department of Economics (University of Verona))

Abstract

We use a large and unique administrative dataset from Italy, covering the period 2009-2014, to investigate opportunistic behavior (moral hazard) and the effectiveness of monitoring policies related to insurance against illness-related income losses. The analysis is based on the outcome of mandatory medical visits aimed at verifying the health status of employees during sickness spells. We find that employers are more effective than the public insurer in selecting sickness episodes to monitor. However, a reduction in the number and a better targeting of visits with the support of appropriate statistical tools may close the gap. We discuss the impact of using direct measures of health, such as the outcome of a medical visit, on the study of the determinants of opportunistic behavior and argue that simply looking at days of work lost, without appropriately controlling for health status, may lead to misleading conclusions if the goal is studying moral hazard.

Suggested Citation

  • Carlo Alberto Biscardo & Alessandro Bucciol & Paolo Pertile, 2015. "Who should monitor job sick leave?," Working Papers 18/2015, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:18/2015
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    References listed on IDEAS

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    More about this item

    Keywords

    sick leave insurance; moral hazard; absenteeism; work ability;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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