Johansson, Per; Palme, Mårten - Institutet för Arbetsmarknads- och Utbildningspolitisk … - 2004
We use a reform of Sweden’s sickness insurance system as a source of exogenous variation to analyse the presence of moral hazard. As a result of the reform, the replacement level was reduced from 90 percent of forgone earnings to 65 percent for the first three days; to 80 percent between day 4...