Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2009:4: Social Interaction and Sickness Absence

Assar Lindbeck (), Mårten Palme () and Mats Persson ()
Additional contact information
Assar Lindbeck: Institute for International Economic Studies, Postal: Stockholm University, S-106 91 Stockholm, Sweden
Mårten Palme: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Mats Persson: Institute for International Economic Studies, Postal: Stockholm University, S-106 91 Stockholm, Sweden

Abstract: Is the sickness absence of an individual affected by the sickness absence behavior of the neighbors? Well-known methodological problems, in particular the so-called reflection problem, arise when trying to answer such questions about group effects. Based on data from Sweden, we adopt several different approaches to solve these problems. Regardless of the approach chosen, we obtain statistically significant estimates indicating that group effects are important for individual sickness absence behavior.

Keywords: Sick-pay insurance; work absence; moral hazard; reflection problem; social norms

JEL-codes: H56; I38; J22; Z13

34 pages, January 30, 2009

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