We estimate a labor supply model on a random sample of Swedish male and female blue collar workers to study the effect of economic incentives on work absence behavior. We observe work absence for each day during 1990 and 1991 for each worker in the sample. We use non-parametric (Kaplan-Meier)...

We study how economic incentives affect labor force exit through different income security programs, old-age pensions as well as income taxes in Sweden. We use the option value for staying in the labor force as a measure of economic incentives and estimate an econometric model for the choice of...

This study tests for forward-looking moral hazard in the social insurance system by exploiting a 1991 reform in Sweden. The replacement rate was reduced for short absences but not for long absences, which introduced a potential future cost of returning to work. Using this exogenous variation in...

We estimate a labor supply model on a random sample of Swedish male and female blue collar workers to study the effect of economic incentives on work absence behavior. We observe work absence for each day during 1990 and 1991 for each worker in the sample. We use non-parametric (Kaplan-Meier)...