Arbeitspapier

Sickness Absence and Search Unemployment

The paper presents a model that allows a unified analysis of sickness absence and search unemployment. Sickness appears as random shocks to individual utility functions, interacts with individual search and labor supply decisions and triggers movements across labor force states. The employed worker prefers absence for sufficiently severe sickness and the unemployed worker may prefer nonparticipation if the disutility of search is amplified by sickness. The decisions governing labor force transitions are influenced by social insurance benefits available for sick or unemployed workers. We examine how these benefits affect individual decisions on absence and search and the implications for employment, unemployment and nonparticipation. The normative analysis of the socially optimal benefit structure suggests that there is, in general, a case for benefit differentiation across states of non-work. In particular, there is a case for a benefit structure that rewards active job search.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2004:6

Klassifikation
Wirtschaft
Labor Force and Employment, Size, and Structure
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings
Thema
Sickness absence
search
unemployment
sickness benefits
unemployment benefits
Fehlzeit
Krankheit
Arbeitsuche
Arbeitslosenversicherung
Theorie

Ereignis
Geistige Schöpfung
(wer)
Holmlund, Bertil
Ereignis
Veröffentlichung
(wer)
Uppsala University, Department of Economics
(wo)
Uppsala
(wann)
2004

Handle
URN
urn:nbn:se:uu:diva-4513
Letzte Aktualisierung
20.09.2024, 08:24 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Holmlund, Bertil
  • Uppsala University, Department of Economics

Entstanden

  • 2004

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