Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2009:13: How to evaluate the impact of part-time sick leave on the probability of recovering

Daniela Andrén ()
Additional contact information
Daniela Andrén: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden

Abstract: This paper presents an econometric framework for analyzing part-time sick leave as a treatment method. We exemplify how the discrete choice one-factor model can address the importance of controlling for unobserved heterogeneity in understanding the selection into part-time/full-time sick leave and the probability to fully recover from a reduced work capacity. The results indicate that part-time sick listing increases the probability to recover compared to full-time sick listing when the expected time to recover is longer than 120 days.

Keywords: part-time sick leave; discrete choice model; selection; unobserved heterogeneity.

JEL-codes: I12; J21; J28

9 pages, October 13, 2009

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