Bargaining for Health: A Case Study of a Collective Agreement-based Health Program for Manual Workers

This paper examines the short- and medium-term effects of the PensionDanmark Health Scheme, the largest privately administered health program for workers in Denmark, which provides prevention and early management of work-related injuries. We use a difference-in-differences approach that exploits a natural variation in the program rollout across collective agreement areas in the construction sector and over time. The results show only little evidence of an effect on the prevention of injuries requiring medical attention in the first 3 years after the program was introduced. Despite this, we find evidence of significant positive effects on several labor market outcomes, suggesting that the program enables some work-injured individuals to maintain their work and earnings capacity. In view of its low costs, the program appears to be cost-effective overall.