The Effects on Sick Leave of Changes in the Sickness Insurance System

Magnus Henrekson () and Mats Persson ()
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Mats Persson: Institute of International Economic Studies, IIES, Postal: Stockholm University, S-106 91 Stockholm, Sweden

No 444, Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: 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.

Keywords: Absenteeism; Labor supply; Sick leave; Sickness insurance; Social security (search for similar items in EconPapers)
JEL-codes: H55 I38 J22 (search for similar items in EconPapers)
Date: 2001-05-16, Revised 2003-03-18
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Published in Journal of Labor Economics, 2004, pages 87-113.

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Related works:
Working Paper: The Effects on Sick Leave of Changes in the Sickness Insurance System (2001)
Journal Article: The Effects on Sick Leave of Changes in the Sickness Insurance System (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:hhs:hastef:0444

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