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Abstract
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.
Keywords
: Public sickness insurance, policy evaluation, natural experiment
JEL classification
: H55, I18, J22, J28
