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Daniela Andrn and Thomas Andrn Gteborg University Department of Economics at the School of Business, Economics and Law
Background
Part-time sick leave existed since the beginning of the 1960s Due to the increase in sick leave during the end of the 1990s, the Swedish government has set out in 2001 a program that aims to reduce sick leave by 50% by the year 2008. part-time sick leave
Empirical specification
The point of departure is a switching regression model with an endogenous switch (Heckman, 1978 1979) between two potential states. A natural extension: is to specify an output equation for each state, allowing the coefficients to differ between the two states of nature, which in this case is PTSL & FTSL.
The model
Y1* = X1 + U1
Y0* = X 0 + U 0
D * = Z D + U D
Y1 = 1 if Y1* 0, Y1 = 0 elsewhere
(Part-time sick leave) (1)
Y0 = 1 if Y0* 0, Y0 = 0 elsewhere
(Full-time sick leave) (2)
D = 1 if D * 0, D = 0 elsewhere
(Selection rule) (3)
U D = + D
( , 1 , 0 , D ) ~ N (0, ) (U1 ,U 0 ,U D ) ~ N (0, ),
12 10 1D 1 + 12 1 0 1 D 2 2 = 1 + 0 0 D 0 0D = 2 2 D
Assumptions
(X , Z)
(Y1 , Y0 ) ( D | X , Z , )
Pr(Yi | Di , X i , i ) = Pr(Yi | X i , i )
The probability to choose a state
Treatment parameters
ATE ( X , Z ) = [ ( X1 + 1 ) ( X 0 + 0 )]dF ( )
Z D TT ( X , Z , D = 1) = D
[( X
+ 1 ) ( X 0 + 0 )] ( Z D + D ) dF ( )
DATA
the 2002 sample of the RFV-LS database of the Swedish Social Insurance Agency of Sweden. exact dates when sickness spells began and ended states before and after sickness (work, education, unemployment, temporary or permanent disability, etc.). sickness history the year before information about individual characteristics, the job, the social insurance, and the type of doctor. 5000 persons benefits 3607 employees without SB/ER
Sick-leave degree in the beginning and at the end of the sickness spell Full-time, full-time Full-time, part-time Part-time, full-time Part-time, part-time On part-time sick leave (%) any time in the beginning
Sick-leave degree in the beginning and at the end of the sickness spell Full-time, full-time Full-time, part-time Part-time, full-time Part-time, part-time t-test pt10 vs. pt11 pt01 vs. pt11 pt00 vs. pt11
All n=3607 mean median 85.5 33.0 156.1 101.0 172.8 125.0 148.1 83.0 12.8 5.4 7.5
Recovered n=2953 mean median 49.6 28.0 103.3 81.0 100.0 85.0 80.5 59.0 15.0 5.6 6.4
Not recovered n=235 mean median 142.4 84.0 172.9 165.5 203.8 248.5 167.5 125.5 1.5 1.2 0.9
Results
The selection into part-time/full-time sick leave the estimated parameters do not change very much
The output equations factor loadings and most of the estimated parameters change sign & magnitude. the changes are relatively bigger for the PT compared to FT equation
ATE 0.6
TT
0.4
0.2
-0.4
-0.6
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