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Starting Sick Leave on Part-Time as a Treatment Method?

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This paper analyzes the effects of starting the sick leave on part-time compared to fulltime on the probability to recover (i.e., return to work with full recovery of lost work capacity). Using a discrete choice one-factor model, we estimate mean treatment parameters and distributional treatment parameters from a common set of structural parameters. Our results indicate that part-time sick leave is not an intensive treatment and should not to be used for all from the very beginning of a case. However, when the output is analyzed for time spans longer than three months, the average probability to recover is higher for those who started on part time sick leave. Besides, the share of individuals who are positive indifferent between the two states is large (above 50%), which suggests that there is potential for increasing the share

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  • Andrén, Daniela & Thomas, Andrén, 2009. "Starting Sick Leave on Part-Time as a Treatment Method?," Working Papers 2009:10, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2009_010
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    1. Heshmati, Almas & Engström, Lars-Gunnar, 1999. "Estimating the Effects of Vocational Rehabilitation Programs in Sweden," SSE/EFI Working Paper Series in Economics and Finance 293, Stockholm School of Economics, revised 10 Sep 1999.
    2. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    5. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
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    More about this item

    Keywords

    part-time sick leave; selection; unobserved heterogeneity; treatment effects;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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