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First Exits From The Swedish Labor Market Due To Disability

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  • Andrén, Daniela

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

The number of disability exits has been increasing in recent years, raising questions both about the well being of affected individuals, and about how to finance the related disability pensions. Using a longitudinal database owned by the Swedish National Social Insurance Board, this study analyzes the risk to exit into disability at a certain age, assuming that people remained in the labor force until that age. The estimates show that it was more than 7% higher for each 100 days of sickness, but was lower with each additional sickness spell. It was also higher for increments of 1% in the regional unemployment rate. These results suggest that more resources should be allocated for prevention, improving working conditions and designing the tasks of each job so as avoid overuse of employees working capacity.

Suggested Citation

  • Andrén, Daniela, 2001. "First Exits From The Swedish Labor Market Due To Disability," Working Papers in Economics 49, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0049
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    File URL: http://hdl.handle.net/2077/2864
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    References listed on IDEAS

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    Cited by:

    1. Hallberg, Daniel, 2003. "A Description of Routes out of the Labor Force for Workers in Sweden," Working Paper Series 2003:23, Uppsala University, Department of Economics.

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    More about this item

    Keywords

    disability pension; sickness spells; long-term sickness; single risk and competing risks models;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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