Sick Pay Insurance and Sickness Absence: Some European Cross‐Country Observations and a Review of Previous Research

24 Pages Posted: 28 May 2020

See all articles by Marten Palme

Marten Palme

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

Mats Persson

Stockholm University; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: February 2020

Abstract

All European countries have some form of compulsory insurance against the loss of income due to temporary disability. The insurance schemes vary widely between countries both in terms of measurable entities (such as the compensation level) as well as in unmeasurable traits concerning the actual implementation of the programs. In this paper we use European Labour Force Survey data to study how the measurable differences in the programs is associated with differences in absence rates. We also summarize the theoretical literature on insurance principles in this field. Based on the empirical literature we then discuss how different forms of incentives may affect the work absence rate.

Keywords: Work absence, Moral hazard, Temporary disability insurance

Suggested Citation

Palme, Marten and Persson, Mats, Sick Pay Insurance and Sickness Absence: Some European Cross‐Country Observations and a Review of Previous Research (February 2020). Journal of Economic Surveys, Vol. 34, Issue 1, pp. 85-108, 2020, Available at SSRN: https://ssrn.com/abstract=3609394 or http://dx.doi.org/10.1111/joes.12351

Marten Palme (Contact Author)

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

Mats Persson

Stockholm University ( email )

Stockholm, SE-10691
Sweden

HOME PAGE: http://www.cesifo.de

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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