Labour market effects of activating sick-listed workers

Abstract

Using data from a large-scale randomized controlled trial conducted in Danish job centers, this paper investigates the effects of activating sick-listed workers on subsequent labour market outcomes. Comparing treated and controls, we find an overall unfavourable effect on subsequent labour market outcomes. Using variations in activation regimes (both between job centers and between randomly assigned treatment and control groups within a given job center) as an instrument for participating in a specific activity, we compare the relative effectiveness of alternative activation strategies. Our results show that the use of partial sick leave increases the length of time spent in regular employment, and also reduces the time spent in unemployment and in early retirement. Traditional active labour market programs and the use of paramedical care appear to have no effect at all, or even an adverse effect.

Sick but at work: Graded sick leave in a comparative perspective

“…In their systematic mapping review, Meneses-Echavez, Baiju, and Berg (2018) conclude that such schemes "may be associated with several favourable outcomes, such as shorter sickness absence and higher work participation." Three further high-quality studies that have been published more recently, corroborate the cautious conclusions from this review (Hernaes, 2018;Kools & Koning, 2019;Rehwald et al, 2018). The available findings do however show variation in the effectiveness of graded sick leave along different dimensions.…”

“…This concerns primarily studies that evaluate the impact of a specific graded sick leave scheme on labour market or health outcomes (f.i. Høgelund, Holm, & McIntosh, 2010; Andrén & Svensson, 2012; Viikari‐Juntura et al, 2017; Rehwald, Rosholm, & Rouland, 2018). With the exception of Kausto, Miranda, Martimo, and Viikari‐Juntura (2008), however, there is hardly any comparative research of graded sick leave models, particularly with respect to institutional characteristics and benefit design.…”

Impact of a personalised active labour market programme for persons with disabilities

“…Rehwald et al evaluated a Danish policy experiment on intensifying rehabilitation support and activation during sick leave [3]. The programme lasted 18 weeks and included weekly caseworker meetings and rehabilitation activities, which could take one of three forms: (a) traditional measures (e.g.…”

“…vocational rehabilitation or supported employment). While most developed countries apply a range of policies to promote the labour market integration of disabled jobseekers, the existing evidence on the effectiveness of particular forms of intervention is scarce, especially for European countries [1–3].…”

“…Employment rehabilitation measures that aim to place disabled jobseekers in the regular labour market are likely to be more successful in a context where: (a) employers (and fellow workers) are not strongly prejudiced against people with disabilities; and (b) public employment services (or the external providers subcontracted by them) have the necessary expertise to implement a high-quality rehabilitation service. Hungary is much weaker on both these conditions than the Nordic countries or the UK where similar measures have already been implemented with some success [3–6]. Moreover, in Hungary people with disabilities have typically worked in segregated sheltered workshops [7], implying that most employers in the open labour market are unused to hiring them.…”