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Explaining Heterogeneity in Use of Non-wage Benefits: The Role of Worker and Firm Characteristics in Disability Accommodations

Author

Listed:
  • Naoki Aizawa
  • Corina Mommaerts
  • Stephanie Rennane

Abstract

Non-wage benefits are an important component of employment arrangements, but are not available to or used by all workers. Do differences in firm, worker, or match-specific characteristics drive benefit take-up? We provide new evidence on heterogeneity in use of non-wage benefits, focusing on disability accommodations. Using administrative data in Oregon, we document significant dispersion in accommodation rates across worker and firm characteristics. We decompose the variance in accommodation use, finding that firm characteristics explain substantially more than worker or injury characteristics (29 percent vs. 4 percent). This finding highlights the firm's role in use of non-wage benefits like disability accommodations.

Suggested Citation

  • Naoki Aizawa & Corina Mommaerts & Stephanie Rennane, 2022. "Explaining Heterogeneity in Use of Non-wage Benefits: The Role of Worker and Firm Characteristics in Disability Accommodations," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 376-380, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:376-80
    DOI: 10.1257/pandp.20221124
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    Cited by:

    1. Marta Lachowska & Isaac Sorkin & Stephen A. Woodbury, 2022. "Firms and Unemployment Insurance Take-Up," Upjohn Working Papers 22-369, W.E. Upjohn Institute for Employment Research.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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