Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56114
Authors: 
Henrekson, Magnus
Persson, Mats
Year of Publication: 
2001
Series/Report no.: 
SSE/EFI Working Paper Series in Economics and Finance 444
Abstract: 
In order to get a more complete picture of how labor supply is affected by economic incentives, the effects on absenteeism and not just on contracted hours should be taken into account. In particular, absenteeism due to sick leave can be considerable. In this paper we examine whether the level of sick leave compensation affects sick leave behavior. Using time-series data for Sweden spanning a long period (1955-99) with numerous changes of the compensation level, we generally find strong effects of the expected sign. Reforms implying more generous compensation for sick leave tend to be associated with permanent increases in total sick leave per person employed and vice versa. These findings are reinforced in a panel study covering the 1983-91 period.
Subjects: 
Absenteeism
Labor supply
Sick leave
Sickness insurance
Social security
JEL: 
H55
I38
J22
Document Type: 
Working Paper

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