Employer Costs of Sickness Absence: Results and Lessons Learned

Martti Kulvik, Tero Kuusi, Annu Laurikka and Tarmo Valkonen

No 160, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract Sickness absence causes a significant loss of value added for employers and increases production costs. The subject is important and interesting, but difficult to research. In this Brief, we present key findings from our contribution to Keva’s Sustainable Working Life project, with focus on the direct costs of short-term sickness absence, a literature review of research recommendations in the field, and modelling the role of organisational factors on sickness absence. We also bring together key research problems and pitfalls that we have explored in our extensive project, both through the literature and our own first-hand experience – and make recommendations for getting around the pitfalls.

Keywords: Costs of sickness absence; Municipal employers; Keva; Public sector; Organisational effects (search for similar items in EconPapers)
JEL-codes: J22 J30 J45 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2025-06-23
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