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Substitution between temporary parental leave and sickness absence

Author

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  • Persson, Malin

    (National Institute of Economic Research)

Abstract

This paper studies interrelations between two benefits in the Swedish social insurance system: the sickness insurance and the temporary parental benefit. The level of compensation differs between the two benefits creating an economic incentive for parents to claim temporary parental benefit when being ill. The substitution between the two benefits is studied using a randomized experiment were parents received information that their use of the temporary parental benefit would be subject to intensified monitoring. Receiving this information decreased utilization of the temporary parental benefit but at the same time led to an increase in short-term sickness absence by 4.9 percent. This corresponds to approximately 43 percent of the decreased use of the temporary parental benefit.

Suggested Citation

  • Persson, Malin, 2011. "Substitution between temporary parental leave and sickness absence," Working Paper Series 2011:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2011_019
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    References listed on IDEAS

    as
    1. Hesselius, Patrik & Persson, Malin, 2007. "Incentive and spill-over effects of supplementary sickness compensation," Working Paper Series 2007:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Engström, Per & Hesselius, Patrik & Persson, Malin, 2007. "Excess use of Temporary Parental Benefit," Working Paper Series 2007:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Caroline Hall & Laura Hartman, 2010. "Moral hazard among the sick and unemployed: evidence from a Swedish social insurance reform," Empirical Economics, Springer, vol. 39(1), pages 27-50, August.
    4. Laura Larsson, 2006. "Sick of Being Unemployed? Interactions between Unemployment and Sickness Insurance," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(1), pages 97-113, March.
    5. Johansson, Per & Palme, Marten, 1996. "Do economic incentives affect work absence? Empirical evidence using Swedish micro data," Journal of Public Economics, Elsevier, vol. 59(2), pages 195-218, February.
    6. Johansson, Per & Palme, Marten, 2005. "Moral hazard and sickness insurance," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1879-1890, September.
    7. Per Johansson & Mårten Palme, 2002. "Assessing the Effect of Public Policy on Worker Absenteeism," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 381-409.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nikolay Angelov & Per Johansson & Erica Lindahl, 2020. "Sick of family responsibilities?," Empirical Economics, Springer, vol. 58(2), pages 777-814, February.

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    More about this item

    Keywords

    Social insurance; social experiment; monitoring; moral hazard;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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