Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 19/2009: Closing the Gates? Evidence from a Natural Experiment on Physicians' Sickness Certification

Simen Markussen
Additional contact information
Simen Markussen: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Abstract: This paper exploits a Norwegian physician directed reform aimed to reduce sick-leave. Physicians were required to consider part-time sick-leave as the default treatment and – in the case of long lasting full-time sick-leave – to file a report documenting why the worker was unable to perform any work related activities. The reform had a large impact, reducing sick-leave by 18.8 percent. The main effect came from reduced spell duration – which can be directly linked to the extended documentation requirement laid on physicians within the first 8 weeks of a sick-leave spell. Physician-directed policies may be an (cost-) effective way of reducing sick-leave.

Keywords: Labor market policies; sick-leave; physicians’ gate keeping

JEL-codes: H53; I18; J28

39 pages, March 30, 2009

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