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Factors Affecting Return to Work after Injury: A study for the Victorian WorkCover Authority

  • David Johnson

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Tim Fry

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Speedy and efficacious return to work of recovered or recovering workers is a central objective of workers compensation authorities. However, many of the factors that facilitate return to work are not well understood. This paper aims to shed light on these issues by utilizing a sample from the administrative records of workers compensation claimants in Victoria for the financial years 1993/94 to 1997/98. We separately model payments made as pensions (weekly payments) and payments made as lump sums to meet medical purposes (non-weekly claims). Two part model specifications are employed to model both the incidence of a payment and the duration or amount of that payment. The results show that claimant characteristics, characteristics of the accident, industry, employer and insurer characteristics influence the incidence, duration and cost of workers compensation claims.

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2002n28.

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Length: 64 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:iae:iaewps:wp2002n28
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
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  1. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June.
  2. Rochelle V. Habeck & H. Allan Hunt & Brett Van Tol, . "Workplace Factors Associated with Preventing and Managing Work Disability," Upjohn Working Papers and Journal Articles hah19991, W.E. Upjohn Institute for Employment Research.
  3. Richard J. Butler & Marjorie Baldwin & William Johnson, 1995. "Managing work disability: Why first return to work is not a measure of success," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(3), pages 452-469, April.
  4. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models," Econometrica, Econometric Society, vol. 52(3), pages 701-20, May.
  5. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
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