Absenteeism and productivity: the experience rating applied to employer contributions to health insurance

Sébastien Ménard and Coralia Azucena Quintero Rojas

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Abstract: In this paper we analyze the effects of introducing experience rating on the employer contributions to health insurance. Generally, theoretical literature explains absenteeism by the workers' behavior. However, working conditions also has an effect on the use of sick leaves. As a result, Firms proposing good working conditions support the costs generated by the other firms. This implies a reduction of the good quality jobs on the benefit of the bad quality jobs. In this paper, we propose to introduce a modulation of employer contributions to health insurance based on historical rates of absenteeism. We show that the experience rating improves the productivity of the economy and welfare, when the unemployed are able to direct their research towards the good-quality jobs

Keywords: Health Insurance; experience rating; productivity (search for similar items in EconPapers)
Date: 2015-12
New Economics Papers: this item is included in nep-hea and nep-ias
Note: View the original document on HAL open archive server: https://hal.science/hal-01292111v1
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Working Paper: Absenteeism and productivity: the experience rating applied to employer contributions to health insurance (2015)
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