Do Time Limits in the Sickness Insurance System Increase Return to Work?
This paper analyses the effect of introducing a mandatory law for assessing working capacity on the 91st and 181st days of the sick spell.
Taking advantage of the quasi-experimental feature of the intervention, increased exit rates are found in the time periods before each of the assessments. This suggests that the positive effect mainly stems from the increased monitoring of the assessments. The results are more positive in big city areas than in smaller municipalities, indicating that larger labour markets create better opportunities, and stronger incentives, to work.
WORKING PAPER 2010:1WP