Assessing the Effect of Economic Incentives on Incidence and Duration of Work Absence

SSE/EFI Economics and Finance Working Paper No. 228

34 Pages Posted: 11 May 2001

See all articles by Göran Broström

Göran Broström

University of Umea

Per Johansson

IFAU - Institute for Labour Market Policy Evaluation; Uppsala University - Department of Economics; IZA Institute of Labor Economics

Marten Palme

Stockholm University - Department of Economics; IZA Institute of Labor Economics

Date Written: March 18, 1998

Abstract

The incidence and duration of work absence spells for a sample of Swedish blue collar workers in 1991 are analyzed using the Kaplan-Meier estimator, discrete time hazard regression as well as stratified Cox regression. The main interest is directed towards the effect of economic incentives. The effect of a decrease in the replacement level of the compulsory Swedish sickness insurance that took place in March 1991 is analyzed. The incidence of work absence spells decreases markedly after the reform, although no effects on the duration of the spell is found. Significant male-female differences are also found. The main results are robust to the different methods used.

Keywords: discrete time cox regression, sickness insurance, stratified Cox regression

Suggested Citation

Broström, Göran and Johansson, Per and Palme, Marten, Assessing the Effect of Economic Incentives on Incidence and Duration of Work Absence (March 18, 1998). SSE/EFI Economics and Finance Working Paper No. 228, Available at SSRN: https://ssrn.com/abstract=269663 or http://dx.doi.org/10.2139/ssrn.269663

Göran Broström

University of Umea

Dept. of Statistics
SE-901 87 Umea
Sweden

Per Johansson (Contact Author)

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
+ 46 18 471 70 86 (Phone)
+ 46 18 471 70 71 (Fax)

Uppsala University - Department of Economics ( email )

Uppsala, 751 20
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Marten Palme

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46163307 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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