Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2011:5: Is part-time sick leave helping the unemployed?

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

Abstract: Using a discrete choice one-factor model, we estimate mean treatment parameters and distributional treatment parameters to analyze the effects of degree of sick leave on the probability of full recovery of lost work capacity for employed and unemployed individuals, respectively. Our results indicate that one year after the sick leave spell started, the average potential impact of part-time sick listing on an individual randomly chosen from the population on sick leave was positive for both groups, but the average effect on those who actually were on part-time sick leave was positive only for the employed, and negative for the unemployed.

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

JEL-codes: I12; J21; J28

16 pages, March 31, 2011

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