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Sick of Being Unemployed? Interactions between Unemployment and Sickness Insurance

Laura Larsson

Scandinavian Journal of Economics, 2006, vol. 108, issue 1, 97-113

Abstract: This paper examines the incentive effects of interactions between unemployment insurance (UI) and sickness insurance (SI), two important components of Sweden's social insurance system. The main topic is how the sickness‐report rate among the unemployed is affected by (i) the limit of 300 workdays for UI benefits, and (ii) the difference in maximum compensation between UI and SI benefits. Results obtained by duration analysis suggest that sick reports increase as the UI benefit expiration date approaches. There is also evidence of an incentive effect on the sick‐report rate because SI offers higher compensation than UI.

Date: 2006
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https://doi.org/10.1111/j.1467-9442.2006.00443.x

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Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

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