Sick Pay Scheme Changes and Sickness Absenteeism: Empirical Evidence from Norway

This paper focuses on changes in the Norwegian sick pay scheme (SPS), and the effects on sickness absenteeism of four main changes in SPS during th period 1973-1996 are tested empirically on data from nine m anufacturing sectors. The empirical analyses show that economic compe nsation is important for short term absence spells, while increased a ccessibility to this type of absence is not. A generally more generou s SPS also increases long term absence. Different types of campaign l ike means to reduce sickness absenteeism seem to be effective. A numb er of other results concerning effects of economic factors are also g iven in the paper.