The effects on sick leave of changes in the sickness insurance system

Arbeitspapier

In order to get a more complete picture of how labor supply is affected by economic incentives, the effects on absenteeism and not just on contracted hours should be taken into account. In particular, absenteeism due to sick leave can be considerable. In this paper we examine whether the level of sick leave compensation affects sick leave behavior. Using time-series data for Sweden spanning a long period (1955-99) with numerous changes of the compensation level, we generally find strong effects of the expected sign. Reforms implying more generous compensation for sick leave tend to be associated with permanent increases in total sick leave per person employed and vice versa. These findings are reinforced in a panel study covering the 1983-91 period.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SSE/EFI Working Paper Series in Economics and Finance ; No. 444

Classification and Topics

• Classification: Wirtschaft ; Social Security and Public Pensions ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Time Allocation and Labor Supply
• Subject: Absenteeism ; Labor supply ; Sick leave ; Sickness insurance ; Social security ; Fehlzeit ; Krankheit ; Gesetzliche Krankenversicherung ; Zeitreihenanalyse ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Henrekson, Magnus ; Persson, Mats
• Event: Veröffentlichung
• (who): Stockholm School of Economics, The Economic Research Institute (EFI)
• (where): Stockholm
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/56114
• Last update: 10.03.2025, 11:41 AM CET