2006–2010

Employment Protection and Sickness Absence

Reprint No. 2009:20

Author(s): Martin OlssonYear: 2009 Title: Labour Economics Volume (No.): 16 (2) Pages: 208–214
Online article (restrictions may apply)


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.


Reference:
Olsson, Martin (2009), "Employment Protection and Sickness Absence". Labour Economics 16(2), 208–214.

Martin Olsson

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An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

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The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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