Scandinavian Working Papers in Economics

HERO Online Working Paper Series,
University of Oslo, Health Economics Research Programme

No 2005:9: Organisational Change, Absenteeism and Welfare Dependency

Knut Røed () and Elisabeth Fevang ()
Additional contact information
Knut Røed: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, 0349 Oslo, Norway
Elisabeth Fevang: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, 0349 Oslo, Norway

Abstract: In this report the authors show that recent attempts to reorganise and cut costs in the Norwegian health care and social services sectors have had the unintended side effects of raising the level of sickness absence and disability among the employees, and that these effects have persisted several years after completion of the reorganisation processes. Since a substantial proportion of the resulting costs are external to the decision-makers, we suspect that the pace of change may have been excessively high. Changes that were efficient from each service provider’s point of view may have been inefficient from a social and a public-finance point of view.

Keywords: Absenteeism; hazard rate model; NPMLE

JEL-codes: C14; I38; J28

42 pages, June 7, 2009

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