A Dynamic Discrete Choice Model of blue Collar Worker Absenteeism in Sweden 1991

The effect of economic variables on the probability of being absent is studied using panel data for a sample of 1,056 blue collar workers covering day-to-day data for the time period of one year (1991), in all 365,565 observations. Also, the effect of a reform in the sickness insurance on worker absenteeism is studied in some detail. Duration, state dependence and individual heterogeneity are considered. The Slutsky Condition can not be rejected for any individual in the sample and the results show strong economic incentives on worker absenteeism, although the study also shows that the sharp decrease in work absence observed after the reform can not be solely attributed to higher costs of work absence.