The Case for Presenteeism – Evidence from Norway’s Sickness Insurance Program

By Simen Markussen, Arnstein Mykletun and Knut Røed

Published in

Journal of Public Economics, Dec 2012, 96, pages 959 - 972.

DOI: 10.1016/j.jpubeco.2012.08.008

 

Abstract

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 conclude that the activation strategies that in recent years have permeated European and US welfare policy may fruitfully be carried over to sick leave insurance for temporary disabled workers.

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By Simen Markussen, Arnstein Mykletun and Knut Røed
Published Aug. 16, 2013 2:24 PM - Last modified Sep. 13, 2013 3:11 PM