Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 701: The effect of health care expenditure on sickness absence

David Granlund ()
Additional contact information
David Granlund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: Based on data from a panel of the Swedish municipalities during 1993-2004, the effects of public health care expenditure on absence from work due to sickness or disability were studied using an instrumental variable method. Public health care expenditure had no significant effect on absence due to sickness or disability and the standard errors were small enough to rule out all but a minimal effect. The same result was obtained when separate estimates were done for men and women and for absence due to sickness and disability.

Keywords: health care expenditure; sick leave; disability; worker absenteeism; dynamic panel data models; endogeneity

JEL-codes: H51; I12; J22

30 pages, First version: January 16, 2007. Revised: April 13, 2007.

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