Wage Loss Monitoring for Injured Workers in California's Workers' Compensation System: 2014–2015 Injury Year Findings (Second Interim Report)
Dec 27, 2018
This report presents new estimates of wage loss for workers in California who suffered a workplace injury or illness in 2013 and compares these estimates with trends before, during, and after the Great Recession. The authors matched injured workers with control workers in the same firm at the time of injury with similar characteristics and analyzed the impact of injury on labor market outcomes, including earnings and employment.
By the end of the second year after injury, workers injured in 2013 earned approximately 93 percent of what they would have earned in the absence of injury. These earnings losses were driven by workers who received indemnity benefits. Relative earnings were approximately 1–2 percentage points higher than relative earnings during and after the Great Recession (2008–2012). However, relative earnings were lower for workers in industries that were most affected by the Great Recession, workers in small firms, workers with low job tenure, workers with low earnings prior to injury, and workers with cumulative injuries. Workers with cumulative injuries in Southern California were found to have particularly poor labor market outcomes, with relative earnings ranging between 10 and 20 percentage points below the average for all workers with indemnity benefits. Continued monitoring of wage loss in future reports will provide a more complete picture of outcomes for permanently disabled workers as the effects of recent policy changes and economic expansion unfold. Additional research and policy attention should be paid to workers with cumulative injuries throughout the state and specifically in Southern California.
Introduction and Background
Data and Methods for Wage Loss Monitoring
Labor Market Impacts of Workplace Injury: Trends Through 2013
Labor Market Impacts of Workplace Injury: Differences in Earnings Loss Across Groups of Injured Workers Through 2013
Methods and Supplementary Results