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Do Temporary Workers Experience Additional Employment and Earnings Risk After Workplace Injuries?

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  • Nicholas Broten
  • Michael Dworsky
  • David Powell

Abstract

Do temporary workers face more employment and earnings risk than direct-hire workers? We link administrative workers’ compensation claims to earnings records to measure the risk posed by workplace injuries, comparing employment and earnings outcomes between temporary and direct-hire workers injured doing the same job. We implement two complementary empirical strategies to account for underlying differences in labor market attachment. Despite evidence that injury severity does not vary between the two sets of workers, temporary workers suffer larger reductions in employment and more severe earnings losses, persisting at least three years after injury, relative to similar direct-hire workers. The additional earnings losses suffered by temporary workers are partially offset by workers’ compensation benefits, but the income loss gap is still large even after accounting for these benefits.

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  • Nicholas Broten & Michael Dworsky & David Powell, 2019. "Do Temporary Workers Experience Additional Employment and Earnings Risk After Workplace Injuries?," NBER Working Papers 25989, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25989
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    Cited by:

    1. Emile Cammeraat & Brinn Hekkelman & Pim Kastelein & Suzanne Vissers, 2023. "Predictability and (co-)incidence of labor and health shocks," CPB Discussion Paper 453, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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