Employment protection and sickness absence |
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| Authors: | Martin Olsson |
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| Affiliation: | 1. HEP-Renewable Energy Sources Ltd., Ulica grada Vukovara 37, 10 000 Zagreb, Croatia;2. University of Zagreb, Faculty of Electrical Engineering and Computing, Unska 3, 10 000 Zagreb, Croatia;1. CEPII, 113 rue de Grenelle, 75007 Paris, France;2. UMR Economie Publique, INRA and AgroParisTech, Paris, France;3. OECD, Paris, France;1. Bank of Italy, Economics and Statistics Research Department, Italy;2. CRELI-Università Cattolica di Milano, Italy |
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| Abstract: | An exemption in the Swedish Employment Security Act (LAS) in 2001 made it possible for employers with a maximum of ten employees to exempt two workers from the seniority rule at times of redundancies. Using this within-country enforcement variation, the relationship between employment protection and sickness absence among employees is examined. The average treatment effect of the exemption is found to decrease sickness absence by more than 13% at those establishments that were treated relative to those that were not and this was due to a behavioral, rather than a compositional, effect. The results suggest that the exemption had the largest impact on shorter spells and among establishments with a relatively low share of females or temporary contracts. |
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