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Activation against Absenteeism: Evidence from a Sickness Insurance Reform in Norway

Author

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  • Hernaes, Øystein

    (Ragnar Frisch Centre for Economic Research)

Abstract
I evaluate a program aimed at strictly enforcing a requirement that people on long-term sick leave be partly back at work unless explicitly defined as an exception. Employing the synthetic control method, I find that the reform reduced work-hours lost due to absenteeism by 12 % in the reform region compared to a comparison unit created by a weighted average of similar regions. The effect is driven by both increased part-time presence of temporary disabled workers and accelerated recovery. Musculoskeletal disorders was the diagnosis group declining the most. The findings imply large savings in social security expenditures.

Suggested Citation

  • Hernaes, Øystein, 2017. "Activation against Absenteeism: Evidence from a Sickness Insurance Reform in Norway," IZA Discussion Papers 10991, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10991
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    References listed on IDEAS

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    Cited by:

    1. Kools, Lieke & Koning, Pierre, 2019. "Graded return-to-work as a stepping stone to full work resumption," Journal of Health Economics, Elsevier, vol. 65(C), pages 189-209.

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    More about this item

    Keywords

    activation; disability; absenteeism; forkfare;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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