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Managing Work Disability: Why First Return to Work is Not a Measure of Success

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  • Richard J. Butler
  • William G. Johnson
  • Marjorie L. Baldwin

Abstract

Studies of the effectiveness of medical and vocational rehabilitation and the disincentive effects of workers' compensation benefits frequently assume that a return to work signals the end of the limiting effects of injuries. This study is the first to test that assumption empirically. The authors use a rich data set on Ontario workers with permanent partial impairments resulting from injuries that occurred between 1974 and 1987 to show that the effects of injuries on employment are more enduring than previous studies indicate. The rate of successful returns to employment, measured by first return to work, is 85%, but the rate of success evaluated over a longer time period is only 50%.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:ilrrev:v:48:y:1995:i:3:p:452-469
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    Cited by:

    1. Gray, Shannon E. & Lane, Tyler J. & Sheehan, Luke & Collie, Alex, 2019. "Association between workers’ compensation claim processing times and work disability duration: Analysis of population level claims data," Health Policy, Elsevier, vol. 123(10), pages 982-991.
    2. Michele Campolieti, 2002. "The recurrence of occupational injuries: estimates from a zero inflated count model," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 595-600.
    3. Woock, Christopher, 2007. "The earnings losses of injured men: Accounting for injuries outside the Workers' Compensation system," MPRA Paper 14688, University Library of Munich, Germany.
    4. Butler, Richard J. & Hartwig, Robert P. & Gardner, Harold, 1997. "HMOs, moral hazard and cost shifting in workers' compensation," Journal of Health Economics, Elsevier, vol. 16(2), pages 191-206, April.
    5. Bruce Cater & J. Barry Smith, 1999. "Inferring disability from post-injury employment duration," Applied Economics Letters, Taylor & Francis Journals, vol. 6(11), pages 747-751.
    6. Galizzi, Monica & Boden, Leslie I., 2003. "The return to work of injured workers: evidence from matched unemployment insurance and workers' compensation data," Labour Economics, Elsevier, vol. 10(3), pages 311-337, June.
    7. 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).
    8. 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.
    9. admin, clsrn & Gomez, Rafael & Gunderson, Morley, 2009. "For Whom the 'Retirement' Bell Tolls: Inter-temporal Comparisons Using the 1994 and 2002 Canadian General Social Survey," CLSSRN working papers clsrn_admin-2009-31, Vancouver School of Economics, revised 22 Apr 2009.
    10. Cater, Bruce I, 2000. "Employment, Wage, and Accommodation Patterns of Permanently Impaired Workers," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 74-97, January.
    11. Monica Galizzi & Roberto Leombruni & Lia Pacelli & Antonella Bena, 2014. "Wages and return to work of injured workers," LABORatorio R. Revelli Working Papers Series 139, LABORatorio R. Revelli, Centre for Employment Studies.

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