The Case for Presenteeism - Evidence from Norway’s Sickness Insurance Program
Link to article:
Authors:
Markussen, Simen, Arnstein Mykletun, Knut Røed
Year:
2012
Reference:
Vol 96(11-12), 959-972Summary
Can a work-first strategy control moral hazard problems in temporary disability insurance, and accelerate recovery? Based on empirical analysis of Norwegian data, we show that it can. Activation requirements not only bring down benefit claims, they also reduce the likelihood that long-term sickness absence leads to inactivity. Our findings show that absentees who are assigned graded (partial) absence certificates by their physician have shorter absences and higher subsequent employment rates than they would have had on regular sick leave. We con-clude that the activation strategies that in recent years have permeated European and US wel-fare policy may fruitfully be carried over to sick leave insurance for temporary disabled workers.
JEL:
C26, I18, I38, J48
Keywords:
absenteeism, disability, activation, workfare
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 185201
Frisch prosjekt: 1181 - Activation and social insurance
