Daniela Andrén () and Thomas Andrén ()
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Daniela Andrén: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Thomas Andrén: National Institute of Economic Research, Postal: Box 3116; 103 62 Stockholm
Abstract: This paper analyzes the effects of being on part-time sick leave compared to full-time sick leave on the probability of recovering (i.e., returning 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 show that part-time sick leave increases the likelihood of recovering and dominates full-time sick leave for sickness spells of 150 days or longer. For these long spells, the probability of recovering increases by 10 percentage points.
Keywords: part-time sick leave; selection; unobserved heterogeneity; treatment effects
32 pages, October 9, 2008
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