Working Papers in Economics
FIRST EXITS FROM THE SWEDISH LABOR MARKET DUE TO DISABILITY
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.
Keywords: disability pension; sickness spells; long-term sickness; single risk and competing risks models; (follow links to similar papers)
JEL-Codes: I12; J14; J26; J28; (follow links to similar papers)
36 pages, May 23, 2001
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