Effect of health shocks on the absenteeism magnitude at work in Togo: is health insurance a mitigating factor?

Abstract

Background: The occurrence of health shocks affects households economically in various ways. It most often leads to missed work, thus inducing a decrease in productivity and a loss of income. These effects are even more significant if the extent of absenteeism is high or if its duration is long.

Purpose: This study aims to analyse the effects of health shocks on the magnitude of absenteeism and to highlight the potential mitigating effect of health insurance on the magnitude of absenteeism among households affected by the shocks.

Methodology/approach: Absenteeism at work was measured here by the number of days lost due to health problems. Data from the Harmonised Survey on Household Living Conditions (EHCVM) 2019 were used for this purpose. To account for the endogeneity problem in this context, we use Two-Stage Least Square (2SLS) model to achieve our objectives.

Results: Our results suggest that health shocks significantly increase the magnitude of absenteeism from work by increasing the probability of a longer duration of absenteeism. Health insurance mitigates the magnitude of absenteeism by significantly reducing the probability of moving from short to long absenteeism by 3.27.

Conclusion: Health shocks have a significant effect on the magnitude of absenteeism. Given the role of health insurance in mitigating the effect of health shocks, this study highlights the need for an extension of health insurance to a greater number of people for a more significant effect.