Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2009:10: Starting Sick Leave on Part-Time as a Treatment Method?

Daniela Andrén () and Andrén Thomas ()
Additional contact information
Daniela Andrén: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden
Andrén Thomas: Konjunkturinstitutet, Postal: Konjunkturinstitutet, Box 3116, 103 62 Stockholm

Abstract: 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

Keywords: part-time sick leave; selection; unobserved heterogeneity; treatment effects

JEL-codes: I12; J21; J28

24 pages, August 17, 2009

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