The earnings losses of injured men: Accounting for injuries outside the Workers' Compensation system

Abstract

Using individual reports of workplace injuries, I estimate the effect of injuries on the labor market earnings of men. Injured workers suffer large and persistent annual earnings losses, an average of $2,200 per year following injury. Moreover, data restrictions on previous studies resulted in earnings losses 1.2 to 3 times larger than those found when all injured workers are compared to uninjured workers. Largest losses occur when a work limiting disability follows injury, with average losses from$4,000 to $8,000. The findings suggest a more nuanced picture than previously presented, and suggest focusing on injuries resulting in a disability.Workers' Compensation; injuries; earnings;