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Sick of Being Unemployed? Interactions between Unemployment and Sickness Insurance

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  • Laura Larsson

Abstract

This paper examines the incentive effects of interactions between unemployment insurance (UI) and sickness insurance (SI), two important components of Sweden's social insurance system. The main topic is how the sickness‐report rate among the unemployed is affected by (i) the limit of 300 workdays for UI benefits, and (ii) the difference in maximum compensation between UI and SI benefits. Results obtained by duration analysis suggest that sick reports increase as the UI benefit expiration date approaches. There is also evidence of an incentive effect on the sick‐report rate because SI offers higher compensation than UI.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:scandj:v:108:y:2006:i:1:p:97-113
    DOI: 10.1111/j.1467-9442.2006.00443.x
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    References listed on IDEAS

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    1. Larsson, Laura, 2002. "Sick of Being Unemployed? Interactions Between Unemployment and Sickness Insurance in Sweden," Working Paper Series 2002:5, Uppsala University, Department of Economics.
    2. Cassel, Claes-M. & Johansson, Per & Palme, Mårten, 1996. "A Dynamic Discrete Choice Model of blue Collar Worker Absenteeism in Sweden 1991," SSE/EFI Working Paper Series in Economics and Finance 129, Stockholm School of Economics.
    3. Larsson, Laura, 2002. "Sick of being unemployed? Interactions between unemployment and sickness insurance in Sweden," Working Paper Series 2002:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Andersson, Fredrik & Vejsiu, Altin, 2001. "Determinants of plant closures in Swedish manufacturing," Working Paper Series 2001:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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