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Inferring disability from post-injury employment duration

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  • Bruce Cater
  • J. Barry Smith

Abstract

The paper examines the extent to which occupational-injury-induced permanent impairment translates into work-related disability. While most permanently impaired workers return to their time-of-accident employer, job and wage, these workers then experience high initial rates of turnover. This turnover can be seen as a manifestation of the dynamics of information, as the time-of-accident employer re-employs the impaired worker, then 'tests' his/her post-injury productivity in order to resolve initial uncertainty regarding the impairment's impact. These turnover patterns can, accordingly, be utilized as a source of disability inference. A statistical model based on the notion of sequential testing is derived and confronted with data reflecting the post-injury labour market experiences of permanently impaired workers.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:apeclt:v:6:y:1999:i:11:p:747-751
    DOI: 10.1080/135048599352330
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    Cited by:

    1. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.

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