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Assessing the effect of public policy on worker absenteeism

TLDR
In this paper, the authors analyzed the effect of economic incentives on worker absenteeism, using panel data on work absence for 1990 and 1991 with a sample of 1,396 Swedish blue-collar workers.
Abstract
We analyze the effect of economic incentives on worker absenteeism, using panel data on work absence for 1990 and 1991 with a sample of 1,396 Swedish blue-collar workers. During this period Sweden implemented major reforms of both its national income replacement program for short-term sickness and income taxes. Both affected the worker's cost of missing work. Our econometric model allows for state-dependent dynamic behavior and control for unobserved heterogeneity. The latter proves to be an important consideration. We find that the cost of being absent significantly affects work absence behavior.

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Johansson, Per; Palme, Mårten
Working Paper
Assessing the effect of public policy on worker
absenteeism
Working Paper, No. 2002:13
Provided in Cooperation with:
IFAU - Institute for Evaluation of Labour Market and Education Policy, Uppsala
Suggested Citation: Johansson, Per; Palme, Mårten (2001) : Assessing the effect of public
policy on worker absenteeism, Working Paper, No. 2002:13, Institute for Labour Market Policy
Evaluation (IFAU), Uppsala
This Version is available at:
http://hdl.handle.net/10419/82177
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WORKING PAPER 2002:13
Assessing the effect
of public policy on
worker absenteeism
Per Johansson
Mårten Palme
WP2002-13.qxd 02-09-05 14.42 Sida 1

The Institute for Labour Market Policy Evaluation (IFAU) is a research insti-
tute under the Swedish Ministry of Industry, Employment and Communica-
tions, situated in Uppsala. IFAU’s objective is to promote, support and carry
out: evaluations of the effects of labour market policies, studies of the function-
ing of the labour market and evaluations of the labour market effects of meas-
ures within the educational system. Besides research, IFAU also works on:
spreading knowledge about the activities of the institute through publications,
seminars, courses, workshops and conferences; creating a library of Swedish
evaluational studies; influencing the collection of data and making data easily
available to researchers all over the country.
IFAU also provides funding for research projects within its areas of interest.
There are two fixed dates for applications every year: April 1 and November 1.
Since the researchers at IFAU are mainly economists, researchers from other
disciplines are encouraged to apply for funding.
IFAU is run by a Director-General. The authority has a traditional board, con-
sisting of a chairman, the Director-General and eight other members. The tasks
of the board are, among other things, to make decisions about external grants
and give its views on the activities at IFAU. Reference groups including repre-
sentatives for employers and employees as well as the ministries and authori-
ties concerned are also connected to the institute.
Postal address: P.O. Box 513, 751 20 Uppsala
Visiting address: Kyrkogårdsgatan 6, Uppsala
Phone: +46 18 471 70 70
Fax: +46 18 471 70 71
ifau@ifau.uu.se
www.ifau.se
This Working Paper is reprinted from the Journal of Human Resources (2002), Vol
37:2, pp 381–409. Permission to reprint it was granted by the University of Wisconsin
Press 3 June 2002. The purpose of the Working Paper Series is to provide a factual
basis for public policy and the public policy discussion.
ISSN 1651-1166



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Journal ArticleDOI

Sickness absence: an international comparison*

TL;DR: For example, Alkemade et al. as mentioned in this paper show that workers with longer tenure tend to have higher absence rates even when age is controlled for, and that absence is positively correlated with higher usual hours of work.
Journal ArticleDOI

Moral hazard and sickness insurance

TL;DR: In this paper, the replacement level in the Swedish national sickness insurance, which replaces foregone earnings due to temporary illnesses, affects work absence behavior, and the effects of a major reform, whereby the replacement levels during the first 90 days in each absence spell was reduced, on work attendance.
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The Effects on Sick Leave of Changes in the Sickness Insurance System

TL;DR: In this paper, the authors examined whether the level of sick leave compensation affects absenteeism and absenteeism due to sick leave behavior in Sweden and found that more generous compensation for sick leave tends to be associated with permanent increases in total absenteeism per person employed.
References
More filters
Book ChapterDOI

Efficiency Wage Models of the Labor Market: Equilibrium Unemployment as a Worker Discipline Device

TL;DR: In this article, the authors show that the information structure of employer-employee relationships, in particular the inability of employers to costlessly observe workers' on-the-job effort, can explain involuntary unemployment as an equilibrium phenomenon.
Journal ArticleDOI

Effect of organisational downsizing on health of employees

TL;DR: Downsizing is a risk to the health of employees, but this risk varies according to individual factors, such as age, socioeconomic status, and health, as well as factors related to place of work, for example, size and age structure of the staff.
Journal ArticleDOI

Do economic incentives affect work absence? : Empirical evidence using Swedish micro data

TL;DR: In this paper, absenteeism is modelled as an individual day-to-day decision, using a linear demand function, frequently used in labour supply studies, and the parameters in the econometric model are consistently estimated, using the (timeaggregated) number of days absent in 1981 as the dependent variable for a sample of Swedish blue-collar workers (both men and women), under some assumptions on unobserved heterogeneity and serial correlation.
Journal ArticleDOI

The economics of absence: theory and evidence

TL;DR: The literature on the economics of absence stands at present, as well as suggesting some potentially fruitful lines of future enquiry as discussed by the authors, and the aim of this paper is to maintain, and if possible, enhance this momentum.
Journal ArticleDOI

A dynamic stochastic model of medical care use and work absence

Donna B. Gilleskie
- 01 Jan 1998 - 
TL;DR: Using data from the 1987 National Medical Expenditure Survey, the author estimates the structural parameters of an individual's discrete choice stochastic optimization problem using conventional reduced form estimation methods that are prevalent in the health care literature.
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