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Objective:In this article, we estimate the effect of a multidisciplinary collaborationprogram on the length of sickness absence. The intention with the programwas to avoid long-term sickness absence by providing an early and holistic evaluation of the sick-listed individuals' conditions. The target group was individuals who were at risk of becoming long-term sick. The eligibility criteria were mainly based on register information that we have access to.Methods:Using this register information, we estimate different Cox regression models and apply a nonparametric matching estimator. We have also conducted a small randomized experiment.Results:The result from the randomized experiment is not statistically significant, but the point estimate provides the same result as was found in the observational study: The program prolongs rather than shortens the sickness absence spell. That is, the average sickness absence spell is prolonged by about 3 months.Conclusions:Our main explanation for this discouraging result is that the team focuses too much on rehabilitation rather than encouraging the sick-listed individual to return to work.

We analyze a model where the federal government provides risk sharing arrangements to municipalities investing in a local public good. The risk sharing arrangements are an income equalization system and a system allowing for a soft budget constraint, i.e., a bailout. Our main result is that a bailout system in combination with income equalization can be a more efficient risk sharing arrangement than an income equalization system only. Thus, the introduction of a bailout system is welfare improving.

We analyze a model where the federal government provides risk sharing arrangements to municipalities investing in a local public good. The risk sharing arrangements are an income equalization system and a system allowing for a soft budget constraint, i.e., a bailout. Our main result is that a bailout system in combination with income equalization can be a more efficient risk sharing arrangement than an income equalization system only. Thus, the introduction of a bailout system is welfare improving.