There is increasing evidence that graded return-to-work is an effective tool for the rehabilitation of sick-listed workers. Still, little is known on the optimal timing and level of grading in return-to-work trajectories, as well as the allocation of trajectories across worker types. To fill...

We develop a method to estimate domain-specific risk. We apply the method to sickness insurance by fitting a utility function at the individual level, using European survey data on life satisfaction. Three results stand out. First, relative risk aversion increases with income. Second, marginal...