Permanent Disability at Private, Self-Insured Firms: A Study of Earnings Loss, Replacement, and Return to Work for Workers' Compensation Claimants

By Robert T. Reville; Suzanne Polich et al. | Go to book overview

CHAPTER 4
RESULTS ON EARNINGS LOSSES AND REPLACEMENT RATES

In this chapter and the three chapters that follow, we report the empirical results of our research. First, in this chapter, we report our estimates of earnings losses and replacement rates for workers injured at private, self-insured firms. We also compare earnings losses for self- insured employers to new estimates for the same injury years for insured employers.

In Chapter 5, we compare post-injury employment patterns at self-insured employers with those at insured employers to evaluate the claim that return-to-work is better at self-insured firms. In Chapter 6, we examine differences in losses, replacement rates, and uncompensated earnings losses by severity of injury. Finally, in Chapter 7, we empirically explore the explanation for differences between the self-insured and insured firms, focusing on the impact of firm size on proportional earnings losses and pre-injury earnings on replacement rates.


SELF-INSURED EMPLOYERS: BASELINE RESULTS

Figure 4-1 shows the average quarterly earnings of permanent disability claimants at private, self-insured firms in 1993 before and after injury, along with the average quarterly earnings of their comparison group. The earnings peak at Quarter 0, the quarter of injury, because all employees are observed working at the at-injury employer for at least part of that quarter.1 In any other quarter, some individuals (both injured workers and comparison workers) will have no EDD earnings reported and will be assumed to have zero earnings.

Examination of the 12 quarters prior to injury provides a check on the quality of the controls in terms of providing an accurate comparison. The injured workers and comparison workers are matched on the basis of average quarterly earnings over the four quarters prior to injury. The average earnings difference for the first to fourth quarters prior to the match period is $68, and for the fifth to eighth quarters prior to the match period, the difference is $32. This slight difference among the quarters before the match period suggests that the comparison workers are high-quality controls for the injured workers.

In the first quarter after injury, average earnings of injured workers drop 21 percent relative to their comparison workers. Little evidence of recovery in earnings is observed over the

____________________
1
The quarter of injury is defined as the last quarter with observed earnings prior to the date of injury reported on the claims data. We changed the quarter of injury in 0.56 percent of the cases, in which the quarter of injury had no earnings but there was a quarter with earnings within the previous 12-month period. If there was no wage data in the year prior to injury, the claim was dropped.

-25-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Permanent Disability at Private, Self-Insured Firms: A Study of Earnings Loss, Replacement, and Return to Work for Workers' Compensation Claimants
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 99

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.