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What Determines Employer Accommodation of Injured Workers? The Influence of Workers’ Compensation Costs, State Policies, and Case Characteristics

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  • Erin Todd Bronchetti
  • Melissa P. McInerney

    (Erin Todd Bronchetti is Assistant Professor in the Department of Economics, Swarthmore College. Melissa P. McInerney is Associate Professor in the Department of Economics, Tufts University.)

Abstract

Despite a recent dramatic increase in the rate of employer accommodation of injured workers, the extant literature provides little evidence on the determinants of accommodation or the reasons for this upward trend. In this study, the authors take a comprehensive approach to estimating the determinants of workplace accommodation, assessing the influence of employer workers’ compensation (WC) costs; WC market features and state WC laws; and characteristics of firms, injured workers, and their injuries. Using state-level data from the BLS, they find that employer WC costs, WC market features, and state return-to-work (RTW) policies all have an impact on accommodation, but the effects are small and explain only one-fifth of the increase in restricted work. With data on injured workers from the NLSY79 and HRS, the authors study case-specific determinants of accommodation. Results suggest that employer and injury characteristics matter most, and these results are consistent with accommodation occurring mostly at large, experience-rated employers.

Suggested Citation

  • Erin Todd Bronchetti & Melissa P. McInerney, 2015. "What Determines Employer Accommodation of Injured Workers? The Influence of Workers’ Compensation Costs, State Policies, and Case Characteristics," ILR Review, Cornell University, ILR School, vol. 68(3), pages 558-583, May.
    • Handle: RePEc:sae:ilrrev:v:68:y:2015:i:3:p:558-583
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    Citations

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    Cited by:

    1. Hill, Matthew J. & Maestas, Nicole & Mullen, Kathleen J., 2016. "Employer accommodation and labor supply of disabled workers," Labour Economics, Elsevier, vol. 41(C), pages 291-303.
    2. Tempesti, Tommaso, 2018. "Workers’ Health and Establishment Size," MPRA Paper 87654, University Library of Munich, Germany.
    3. Du, Yao & Chan, Chia-Ying & Lin, Chih-Yung & Lu, Chien-Lin, 2023. "Charitable CEOs and employee protection," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    4. Märt Masso & Deborah Foster & Liina Osila & Balázs Bábel & Jan Czarzasty & Ambrus Kiss & Małgorzata Koziarek & Dominik Owczarek, 2019. "The influence of collective employment relations on work accommodation: case studies in Estonia, Hungary and Poland," Transfer: European Review of Labour and Research, , vol. 25(4), pages 451-464, November.
    5. Deborah Foster & Mart Masso & Liina Osila, 2021. "Work accommodations and sustainable working: The role of social partners and industrial relations in the employment of disabled and older people in Estonia, Hungary and Poland," European Journal of Industrial Relations, , vol. 27(2), pages 149-165, June.
    6. 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.

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