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How effective are employer return to work programs?

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  • McLaren, Christopher F.
  • Reville, Robert T.
  • Seabury, Seth A.

Abstract

Reducing the recovery time for workers who are injured or disabled by a workplace accident is a key policy goal. This has motivated the promotion of employer-based return to work programs, despite a lack of systematic evidence on the effectiveness of such programs. We combine data on duration of time out of work for workers’ compensation claimants with information on employer return to work programs to estimate the impact of the programs on time out of work. Discrete-time hazard estimates suggest that the workers in a program return approximately 1.4 times sooner compared to workers injured at a firm without a program. The biggest reductions in work-injury absence are experienced by men, likely due to occupational differences, and by workers with a permanent disability. Modifying work equipment is associated with the greatest reductions in injury durations relative to other program components. Back-of-the-envelope calculations indicate that these programs are cost-effective for large, self-insured employers. More work is needed to determine whether these programs could be adopted successfully by smaller firms.

Suggested Citation

  • McLaren, Christopher F. & Reville, Robert T. & Seabury, Seth A., 2017. "How effective are employer return to work programs?," International Review of Law and Economics, Elsevier, vol. 52(C), pages 58-73.
    • Handle: RePEc:eee:irlaec:v:52:y:2017:i:c:p:58-73
    DOI: 10.1016/j.irle.2017.08.003
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gina Livermore & David Wittenburg & David Neumark, 2014. "Finding alternatives to disability benefit receipt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-9, December.
    2. Nan Maxwell & Albert Liu & Nathan Wozny & Caroline Massad Francis, 2013. "Addressing Return-to-Work Issues in the Federal Employees' Compensation Act with Administrative Data," Mathematica Policy Research Reports 8e3f929cbea0422e8272f03ab, Mathematica Policy Research.
    3. Maura Bardos & Hannah Burak & Yonatan Ben-Shalom, "undated". "Assessing the Costs and Benefits of Return-to-Work Programs," Mathematica Policy Research Reports f026d4c34bc543218ea80d710, Mathematica Policy Research.
    4. David R. Mann & David C. Stapleton, "undated". "Fiscal Austerity and the Transition to Twenty-First Century Disability Policy: A Road Map," Mathematica Policy Research Reports a469448f0c224f3797e584c8c, Mathematica Policy Research.
    5. Yonatan Ben-Shalom & Steve Bruns & Kara Contreary & David Stapleton, "undated". "Stay-at-Work/Return-to-Work: Key Facts, Critical Information Gaps, and Current Practices and Proposals," Mathematica Policy Research Reports a56bde146b0444f2a6bb67940, Mathematica Policy Research.
    6. Jacob Denne & George Kettner & Yonatan Ben-Shalom, "undated". "The Role of the Physician in the Return-to-Work Process Following Disability Onset," Mathematica Policy Research Reports 80307ff4a2d9465c871244b77, Mathematica Policy Research.
    7. Yonatan Ben-Shalom & Jennifer Christian & David Stapleton, "undated". "Reducing Job Loss among Workers with New Health Problems," Mathematica Policy Research Reports e8f7e58238e94e5089a6ae227, Mathematica Policy Research.
    8. Jennifer Christian, 2015. "Establishing Accountability to Reduce Job Loss After Injury or Illness," Mathematica Policy Research Reports 658ecb01c8894c9fa2bfe8758, Mathematica Policy Research.
    9. Monica Galizzi & Roberto Leombruni & Lia Pacelli & Antonella Bena, 2014. "Wages and return to work of injured workers," LABORatorio R. Revelli Working Papers Series 139, LABORatorio R. Revelli, Centre for Employment Studies.
    10. David C. Stapleton & Frank H. Martin, 2012. "Vocational Rehabilitation on the Road to Social Security Disability: Longitudinal Statistics from Matched Administrative Data," Working Papers wp269, University of Michigan, Michigan Retirement Research Center.

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    More about this item

    Keywords

    Workers’ compensation; Return to work; Workplace injuries; Self-insurance; Duration analysis;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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