Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2014 Oct;57(10):1165-73.
doi: 10.1002/ajim.22362.

Using linked federal and state data to study the adequacy of workers' compensation benefits

Seth A Seabury  1 , Ethan Scherer, Paul O'Leary, Al Ozonoff, Leslie Boden
Affiliations

Using linked federal and state data to study the adequacy of workers' compensation benefits

Seth A Seabury et al. Am J Ind Med. 2014 Oct.

Abstract

Background: We combined federal and state administrative data to study the long-term earnings losses associated with occupational injuries and assess the adequacy of workers' compensation benefits.

Methods: We linked state data on workers' compensation claims from New Mexico for claimants injured from 1994 to 2000 to federal earnings records from 1987 to 2007. We estimated earnings losses up to 10 years after injury and computed the fraction of losses replaced by benefits.

Results: Workers with lost-time injuries lost an average of 15% of their earnings over the 10 years after injury. On average, workers' compensation income benefits replaced 16% of these losses. Men and women had similar losses and replacement rates. Workers with minor injuries had lower losses but also had lower replacement rates.

Conclusion: Earnings losses after an injury are highly persistent, even for comparatively minor injuries. Income benefits replace a smaller fraction of those losses than previously believed.

Keywords: disability compensation; earnings losses; injured workers; injury cost; workers' compensation.

PubMed Disclaimer

Figures

Figure 1
Figure 1
Average Annual Wages of Injured Workers Relative to Comparison Group
Figure 2
Figure 2
Annual Wages Relative to Comparison Group For Men and Women by Injury Severity Group
Figure 3
Figure 3
Predicted Probability of Self-Employment For Men and Women by Injury Severity Group
See this image and copyright information in PMC

References

    1. Berkowitz M, Burton JF., Jr . Permanent Disability Benefits in Workers' Compensation. W.E. Upjohn Institute for Employment Research; Kalamazoo, MI: 1987.
    1. Bhattacharya J, Neuhauser F, Reville RT, Seabury SA. Evaluating Permanent Disability Ratings Using Empirical Data on Earnings Losses. Journal of Risk and Insurance. 2010;77:231–260.
    1. Biddle J. Estimation and analysis of long term wage losses and wage replacement rates of Washington State workers' compensation claimants, Appendix F. In: Welch E, editor. Performance audit of the Washington State workers' compensation system. Joint Legislative Audit and Review Committee; Olympia, WA: 1998.
    1. Boden LI, Galizzi M. Ecnomic consequences of workplace injuries and illnesses: Lost earnings and benefit adequacy. American Journal of Industrial Medicine. 1999;36:487–503. - PubMed
    1. Boden LI, Galizzi M. Income losses of women and men injured at work. Journal of Human Resources. 2003;38:722.

Publication types