Assessing the effect of public policy on worker absenteeism

Research, Preprint OPEN
Johansson, Per ; Palme, Mårten (2001)
  • Publisher: Uppsala: Institute for Labour Market Policy Evaluation (IFAU)
  • Subject: logit regression | unobserved heterogeneity | J22 | Sickness insurance | Sickness insurance; unobserved heterogeneity; logit regression
    • ddc: ddc:330
      jel: jel:J22

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.
  • References (1)

    Sacklén Hans “An evaluation of the Swedish trainee replacement schemes” 2002:13 Johansson Per & Mårten Palme “Assessing the effect of public policy on worker absenteeism”

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