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2

Abstract

Rehabilitation of mental illness and chronic pain – the impact on sick leave

and health

1

This paper exploits a government initiative to analyze the effect of cognitive

behavioral therapy (CBT) for individuals with mild or moderate mental

illness and multidisciplinary treatment (MDT) for individuals with pain in

back and shoulders. We employ a propensity score matching approach to

study the effects on sick leave, health care consumption and drug

prescriptions. We find that CBT improved health and prevented sick leave

for individuals who were not on sick leave when treatment was initiated but

had no effect for individuals who were on sick leave when the treatment

was initiated. MDT was a failure regardless of the individual’s sick leave

status at the time of treatment. MDT increased sick leave while having no

long term impact on either health care visits or drug prescriptions.

Pathric Hägglund

2

, Per Johansson

3

and Lisa Laun

4

Keywords: Mental diseases, Chronic pain, Sick leave, Propensity score

matching

JEL-codes: H43, I13, J22

1

We are grateful for comments from Nikolay Angelov, Marcus Eliason, Malin

Josephson, Martin Lundin, Ingemar Petersson, Peter Skogman Thoursie and

seminar participants at the Swedish Social Insurance Inspectorate (ISF) and the

Institute for Evaluation of Labour Market and Education Policy (IFAU). We also want

to thank Charlotte Bergknut, Anna Jöud and Ingemar Petersson at Epi-centrum

Skåne for their cooperation and assistance with data, as well as Anja Nyberg at

Region Skåne.

2

Swedish Social Insurance Inspectorate (ISF)

3

Uppsala University, Institute for Evaluation of Labour Market and Education Policy

(IFAU) and IZA

4

Institute for Evaluation of Labour Market and Education Policy (IFAU)