Organizational Changes, Absenteeism

&
Welfare Dependency

Prepared By:- Source:-

Shreyas D Laste Journal of HR
Roll No- 28 Volume-42
Number-1
Winter 2007
Published By:-
The University of Wisconsin Press
 Introduction
Early 1990s to 2003, Norway experienced remarkable increase in sickness &
health related withdrawals from the labor market.

Based on Norwegian register data, Knut Roed who is senior researcher &
Elisabeth Fevang who is research assistant at the Ragnar Frisch Centre for
Economic Research set up a Multivariate Mixed Proportional Hazard Model
(MMPH).

Focus on a group of workers that faced substantial workplace turbulence during

1990s-namely nurses working in hospitals, nursing homes & community
nursing
The Data: Employment, Welfare Dependency
&
Work Place Characteristics
 Trained Nurses(1992) Enrolled Nurses(1992)
All Age<35 36-52 Age<35 36-52
No. of Individual 43,167 9905 12112 6412 14868
Female (Percent) 38 30 42.6 30 43.1
1.Status at the end
of October 1992
Mean No. of
Contracted working
hours relative to full
time position(Percent) 74.2 79.1 77.9 66.7 71.2
Working in hospitals 42 64.3 58.9 14.8 25.3
Working in Nursing
homes 35.8 17.5 21.6 59.1 49.4
Working in psychiatric
Institutions 6.2 4.5 6.1 6.9 7.2
Working in
Community nursing 16 13.7 13.4 19.2 18.3
Absent due to parental
leave 3.6 8.5 1.1 7.2 0.7
Fraction of remaining
Worker absent due to
Long term sickness 6.1 5.3 4.7 7.2 7.3
 Trained Nurses Enrolled Nurses
All Age<35 36-52 Age<35 36-52
2.Status at the end
of October 2000
Mean No. of
Still working without
income support in the
health care & social
service sector 81 81.1 83.4 79.9 79.6
Out of which absent
due to parental leave 0.8 2.0 0.0 2.0 0.0
Fraction of remaining
workers absent due
long term sickness 9.2 6.7 8.4 9.0 11.6
Still working without
income support, but in
another sector of
Economy 2.9 4.1 3.5 3.2 1.5
Out of which absent
due to parental leave 0.8 1.5 0.0 1.9 0.0
Fraction of remaining
workers absent due to
 Trained Nurses Enrolled Nurses
All Age<35 36-52 Age<35 36-52
Fraction of remaining
workers absent due to
sickness 5.3 4.2 4.5 5.5 8.6
Fully disabled 3.4 0.6 2.9 1.7 6.4
Partly disabled 2.5 0.5 2.6 1.1 4.3
Under Rehabilitation 2.9 1.9 2.1 4.5 3.6
Unemployed 0.2 0.1 0.1 0.3 0.2
Living on means-
tested social assistance 0.0 0.0 0.0 0.1 0.1
Self supported
Non employed 5.5 9.8 3.7 8.1 2.9
Not registered(dead
or migrated to another
country without benefits 1.6 1.9 1.7 1.1 1.4
Receiving some kind of
social security benefit 16.9 9.0 15.2 15.1 24.2s
 The Model: The Dynamics of Absence &
Welfare Dependency
The model is set up in terms of monthly transition probabilities
between various labor market states, conditioned on vectors of
observed & unobserved explanatory variables.
Individuals can move among four mutually exclusive states:-
Present at work without Reliance on social security benefits(this
state also
includes absence spells shorter than 16 days, which are paid for
by the
employer)

Absent from work with sickness benefits from the National

Insurance
Administration (NIA).

Non employed (or partly employed) with social security

benefits(unemployment
 A New
Workplace

(3)

Other
Present
(6) (4) Benefits
(State a)
(State c)
(2) (1)
Self-
Supported
Absent
(5) Non-
(State b)
employment
(State d)

Non
Employed
Employed
 Transitions
1. From work presence(State a) to long-term sickness absence(State b) {73,493}

3. From long-term sickness absence(State b) to work presence(State a){61,450}

5. From a job at one workplace (State a or b) to another workplace.{20,683}

7. From a job(State a or b) to non employment benefits(State c) {7,486}

9. From a job(State a or b) to self-supported non employment (State d){6,617}

11. From a job(State c or d) back to a job(State a) {7,576}

Conclusion
Thank You