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The Effects Of Worker Heterogeneity On Duration Dependence: Low-Back Claims In Workers Compensation

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

Abstract

We estimate models of workers compensation claim duration for a sample of Canadian workers with serious low-back injuries. The models extend recent duration research by allowing worker characteristics to affect duration dependence through the nonlocation parameters of the duration distribution. We compare results for modified Weibull models and piecewise-constant hazard rate models of duration dependence. The results show that workers' responses to elapsed claim duration vary significantly with their characteristics and with economic incentives to return to work. Further, allowing for heterogeneity in duration dependence effects can dramatically change the coefficient estimates of the variables that determine the location parameter of the duration distribution. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Richard J. Butler & Marjorie L. Baldwin & William G. Johnson, 2001. "The Effects Of Worker Heterogeneity On Duration Dependence: Low-Back Claims In Workers Compensation," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 708-716, November.
    • Handle: RePEc:tpr:restat:v:83:y:2001:i:4:p:708-716
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    1. Andersen, Signe Hald, 2010. "The cost of sickness: On the effect of the duration of sick leave on post-sick leave earnings," Social Science & Medicine, Elsevier, vol. 70(10), pages 1581-1589, May.
    2. Dzhumashev, Ratbek & Mishra, Vinod & Smyth, Russell, 2016. "Exporting, R&D investment and firm survival in the Indian IT sector," Journal of Asian Economics, Elsevier, vol. 42(C), pages 1-19.
    3. Anderl, Eva & Schumann, Jan Hendrik & Kunz, Werner, 2016. "Helping Firms Reduce Complexity in Multichannel Online Data: A New Taxonomy-Based Approach for Customer Journeys," Journal of Retailing, Elsevier, vol. 92(2), pages 185-203.
    4. Moral De Blas, Alfonso & Corrales-Herrero, Helena & Martín-Román, Ángel, 2012. "Glass Ceiling or Slippery Floors? Understanding Gender Differences in the Spanish Worker’s Compensation System/¿Techo de cristal o suelo resbaladizo? Comprendiendo las diferencias de género en el sist," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 311-340, Abril.
    5. Amélie Speiser, 2021. "Back to work: the effect of a long-term career interruption on subsequent wages in Switzerland," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 157(1), pages 1-14, December.
    6. 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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