NON-LINEAR UNEMPLOYMENT EFFECTS IN SICKNESS ABSENCE: DISCIPLINE OR COMPOSITION
Solveig Osborg Ose
Jan Morten Dyrstad
By applying Smooth Transition Regressions (Teräsvirta, 1998) we test
whether effects on short (STA) and long term (LTA) sickness absence depend
on the level of unemployment. The main question is to what extent unemployment
absence through so-called discipline and/or composition effects. The empirical
analysis is carried out on time series data referring to blue collar workers
in Norway. For LTA we conclude that only discipline effects are present.
Concerning STA, none of these e¤ects seems present among women,
whereas both effects may be present among men. Non-linear effects of wage
and sick pay scheme changes support these conclusions.