Work Absence in Europe

45 Pages Posted: 9 Feb 2006  

Leo Bonato

International Monetary Fund (IMF)

Lusine Lusinyan

International Monetary Fund (IMF); European University Institute - Economics Department (ECO)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2004

Abstract

Work absence is an important part of the individual decision on actual working hours. This paper focuses on sickness absence in Europe and develops a stylized model where absence is part of the labor-leisure decision made by workers and the production decision made by profit-maximizing firms, with insurance provisions and labor market institutions affecting the costs of absence. The results from a panel of 18 European countries indicate that absence is increased by generous insurance schemes where employers bear little responsibility for their costs. Shorter working hours reduce absence, but flexible working arrangements are preferable if labor supply erosion is a concern.

Keywords: sickness absence, working time, social insurance, panel data, Europe

JEL Classification: C23, I18, I38, J22

Suggested Citation

Bonato, Leo and Lusinyan, Lusine, Work Absence in Europe (October 2004). IMF Working Paper No. 04/193. Available at SSRN: https://ssrn.com/abstract=879018

Leo Bonato (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States
202 623 6712 (Phone)
202 589 6712 (Fax)

HOME PAGE: http://www.imf.org

Lusine Lusinyan

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

European University Institute - Economics Department (ECO) ( email )

Villa San Paolo
Via della Piazzuola 43
50133 Florence
Italy

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