The goal of this paper is to analyze short term-absences from work (i.e., periods of seven days or less) in Sweden during a period with two different reforms. As a theoretical model we use a utility-maximization framework with two restrictions (time and budget constraints). Using multiple spell...

Using a longitudinal data for about 1800 persons observed between 1986 and 1991, this study investigates the incentive effects on short-term sickness spells of two important regime changes in the social insurance system in Sweden implemented in 1987 and 1991. The results indicate that the rules...