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Restricted Work, Workers’ Compensation, and Days Away from Work

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  • Geetha M. Waehrer
  • Ted R. Miller

Abstract

We use an establishment-based survey of occupational injuries to analyze employers’ use of restricted work and its effect on days away from work. Because restricted work provisions vary with the duration and severity of injury, we use its predicted probability in our analysis of days away from work. Higher benefits and lower state waiting periods increase the likelihood of restricted work which substitutes for days away from work especially for hard-to-diagnose injuries. Our results suggest that failure to control for restricted work may yield downward biased estimates of the direct effect of income replacement on work loss.

Suggested Citation

  • Geetha M. Waehrer & Ted R. Miller, 2003. "Restricted Work, Workers’ Compensation, and Days Away from Work," Journal of Human Resources, University of Wisconsin Press, vol. 38(4).
    • Handle: RePEc:uwp:jhriss:v:38:y:2003:i:4:p964-991
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    References listed on IDEAS

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    1. Dionne, Georges & St-Michel, Pierre, 1991. "Workers' Compensation and Moral Hazard," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 236-244, May.
    2. Morley Gunderson & Douglas Hyatt, 1996. "Do Injured Workers Pay for Reasonable Accommodation?," ILR Review, Cornell University, ILR School, vol. 50(1), pages 92-104, October.
    3. Richard J. Butler & William G. Johnson & Marjorie L. Baldwin, 1995. "Managing Work Disability: Why First Return to Work is Not a Measure of Success," ILR Review, Cornell University, ILR School, vol. 48(3), pages 452-469, April.
    4. Butler, Richard J & Durbin, David L & Helvacian, Nurhan M, 1996. "Increasing Claims for Soft Tissue Injuries in Workers' Compensation: Cost Shifting and Moral Hazard," Journal of Risk and Uncertainty, Springer, vol. 13(1), pages 73-87, July.
    5. Butler, Richard J & Worrall, John D, 1991. "Gamma Duration Models with Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 161-166, February.
    6. William P. Curington, 1994. "Compensation for Permanent Impairment and the Duration of Work Absence: Evidence from Four Natural Experiments," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 888-910.
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    Cited by:

    1. Alison Morantz, 2010. "Opting Out of Workers' Compensation in Texas: A Survey of Large, Multistate Nonsubscribers," NBER Chapters, in: Regulation vs. Litigation: Perspectives from Economics and Law, pages 197-238, National Bureau of Economic Research, Inc.
    2. Carlo Alberto Biscardo & Alessandro Bucciol & Paolo Pertile, 2015. "Who should monitor job sick leave?," Working Papers 18/2015, University of Verona, Department of Economics.

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