Perceived job security and sickness absence: a study on moral hazard

Area of Science:

• Health Economics
• Occupational Health
• Behavioral Economics

Background:

• Moral hazard in insurance utilization is a key concern.
• Perceived job security may influence employee behavior regarding sickness absence.
• Understanding gender differences in response to job security is crucial.

Purpose of the Study:

• To investigate the moral hazard problem in sickness insurance utilization.
• To analyze the relationship between perceived job security and sickness absence frequency.
• To examine gender-specific influences of job security indicators on sickness absence.

Main Methods:

• Analysis of individual employee behavior regarding sickness insurance.
• Utilized public health survey data from Stockholm County, Sweden (2002).
• Employed logistic regression analyses for short-term and long-term sickness absence, stratified by gender.

Main Results:

• Higher perceived job security correlated with more frequent sickness absence.
• Short-term sickness absence was more strongly influenced by perceived job security than long-term absence.
• Moral hazard indications were observed in both female and male employees, with differing influences of job security indicators.

Conclusions:

• Perceived job security significantly impacts sickness absence behavior, particularly short-term absences.
• Evidence of moral hazard exists in sickness insurance utilization among employees.
• Gender moderates the effect of job security indicators on sickness absence patterns.