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Do time limits in the sickness insurance system increase return to work?

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  • Pathric Hägglund

Abstract

This article analyzes the effect of stricter enforcement of the eligibility criteria in the Swedish sickness insurance (SI) system. In 2008, time-restricted assessments of the individual’s working capacity on the 91st and 181st sick day was introduced. Taking advantage of the quasi-experimental feature of the intervention, I find a large and significant increased exit rate around the 181-day assessment. The impact is the result of longer spells outside SI-benefits, indicating that the stricter rules create disincentives to report sick. Copyright Springer-Verlag 2013

Suggested Citation

  • Pathric Hägglund, 2013. "Do time limits in the sickness insurance system increase return to work?," Empirical Economics, Springer, vol. 45(1), pages 567-582, August.
    • Handle: RePEc:spr:empeco:v:45:y:2013:i:1:p:567-582
    DOI: 10.1007/s00181-012-0618-9
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    References listed on IDEAS

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    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.
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    5. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
    6. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
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    More about this item

    Keywords

    Public sickness insurance; Policy evaluation; Natural experiment; H55; I18; J22; J28;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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