Absenteeism and productivity: an experience-rating adjustment scheme applied to health insurance in France

Sébastien Ménard and Coralia Azucena Quintero Rojas

Lecturas de Economía, 2018, issue 88, 9-50

Abstract: In this paper, we analyze the effects of introducing an experience-rating adjustment scheme on employer’s contributions to health insurance. To this end, we develop a search and matching model in a segmented labor market. In the segment with higher-risk jobs, sick leaves are more frequent and thereby average productivity is lower. The model is calibrated to the French economy. Results from the simulations show that the experience-rating policy slightly improves productivity and employment. In quantitative terms, a 1 % variation in the experience-rating rate induces a 0.48 % reduction in the unemployment spell, a 1.07 % reduction in the days of absence, and a 0.1 % increase in productivity. Finally, this policy also leads to a slightly better economic performance compared to health insurance privatization.

Keywords: health insurance; experience rating; productivity; search and matching models (search for similar items in EconPapers)
JEL-codes: I13 I18 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:lde:journl:y:2018:i:88:p:9-50

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DOI: 10.17533/udea.le.n88a01

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