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The abs light stays illuminated when the onboard computer diagnioses a problem with the anti lock braking system. This means yours brakes still work however the abs function may not operate when the wheels are locked causing a dramatic increase in stopping distance or loss of precise steering in an emergency situation. This problem usually is related to a fualty control computer and is very costly to be replaced through a Volvo dealer. There are people out there that will repair these modules quite cheaply as they are a vary common repair on the 850 model (use eBay or a Volvo forum to find such repairer). The best thing to do is to pay a Volvo dealer to diagnose the fault first as it may be a faulty or dirty wheel sensor causing the problem (cheap repair), otherwise the only thing left is the ABS pump module that could be faulty (expensive repair). Once diagnosed correctly you can then make the right decision as to repair/replace or use second hand parts to repair the cheapest possible way.