Investigation proposes renewed sickness insurance

Extended sick leaves and decreased return to work. Additionally, expenses have increased by nearly 2 billion per year. This shows an investigation with Peter Skogman Thoursie, submitted to the Swedish government on 2 April.

What is the purpose of the investigation?

”The task has been to evaluate the changes in the sickness insurance rules during 2021 and 2022. The new rules implied a less strict assessment of work incapacity between day 181 and 550 of sickness, with the aim of increasing return to work with the own employer,” says Peter Skogman Thoursie, Professor of Economics at Stockholm University.

What are your findings?

”We have analysed incomes, sick leave, labour supply, and health and how these outcomes have been affected by the new rules. To evaluate effects, we have used a design that takes into account counterfactual outcomes.”

”Our results show, among other things, that sick leaves have become longer, the return to the own employer has decreased, and no effects on health could be established. Expenses in the sickness insurance have increased by at least 16 percent, which corresponds to nearly 2 billion per year.”

”We have also analysed rule changes targeted at the elderly which entail lower requirements for adaptation with the aim of reducing early retirement. Even regarding the ’elderly rules’, we see that the new rules have a low degree of goal fulfilment. For the reforms where we could analyse effects, we generally find a low degree of goal fulfilment.”

What are your proposals?

”The investigation proposes, among other things, that the previous rules in the assessment at day 180 of sickness are reintroduced and that the elderly rule within sickness benefits is removed.”

Further reading

Watch the Government’s press conference and read the investigation

Peter Skogman Thoursie is a Professor of Economics at Stockholm University. His research primarily focuses on labour economics.

More about Peter’s research

Text by: Anneli Eriksson