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Organizational Change, Absenteeism, and Welfare Dependency

Based on Norwegian register data, we set up a multivariate mixed proportional hazard model (MMPH) to analyze nurses’ pattern of work, sickness absence, nonemployment, and social insurance dependency from 1992 to 2000, and how that pattern was affected by workplace characteristics. The model is estimated by means of the nonparametric maximum-likelihood estimator (NPMLE). We find that downsizing processes involve a significant increase in the level of sickness absence among still-employed nurses. They also cause a significant increase in the probability of entering into more long-lasting health-related social insurance dependency.