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Absenteeism and productivity: the experience rating applied to employer contributions to health insurance

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  • Sébastien Ménard
  • Coralia Quintero Rojas

Abstract

In this paper we analyze the effects of introducing experience rating on the employer contributions to health insurance. Generally, theoretical literature explains absenteeism by the workers' behavior. However, working conditions also has an effect on the use of sick leaves. As a result, Firms proposing good working conditions support the costs generated by the other firms. This implies a reduction of the good quality jobs on the benefit of the bad quality jobs. In this paper, we propose to introduce a modulation of employer contributions to health insurance based on historical rates of absenteeism. We show that the experience rating improves the productivity of the economy and welfare, when the unemployed are able to direct their research towards the good-quality jobs
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  • Sébastien Ménard & Coralia Quintero Rojas, 2015. "Absenteeism and productivity: the experience rating applied to employer contributions to health insurance," TEPP Working Paper 2015-08, TEPP.
    • Handle: RePEc:tep:teppwp:wp15-08
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    References listed on IDEAS

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    1. Kuhn, Andreas & Lalive, Rafael & Zweimüller, Josef, 2009. "The public health costs of job loss," Journal of Health Economics, Elsevier, vol. 28(6), pages 1099-1115, December.
    2. Allen, Steven G, 1981. "An Empirical Model of Work Attendance," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 77-87, February.
    3. Pascale Lengagne, 2015. "Workers Compensation Insurance: Incentive Effects of Experience Rating on Work-related Health and Safety," Working Papers DT64, IRDES institut for research and information in health economics, revised Jan 2015.
    4. Cédric Afsa & Pauline Givord, 2009. "Le rôle des conditions de travail dans les absences pour maladie : le cas des horaires irréguliers," Economie & Prévision, La Documentation Française, vol. 0(1), pages 83-103.
    5. Ehrenberg, Ronald G, 1970. "Absenteeism and the Overtime Decision," American Economic Review, American Economic Association, vol. 60(3), pages 352-357, June.
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