Labor Supply Decisions of Disabled Male Workers

25 Pages Posted: 18 Oct 2011

See all articles by Harry A. Krashinsky

Harry A. Krashinsky

University of Toronto - Centre For Industrial Relations

Michele Campolieti

University of Toronto at Scarborough - Division of Management

Morley Gunderson

University of Toronto - Department of Economics

Date Written: October 17, 2011

Abstract

We use unique survey data, collected by the Workers' Compensation Board of Ontario, to estimate the labor supply response of disabled male workers to benefit payouts and their post-injury wage. Our data enable us to fill gaps in the existing literature by estimating the hours as well as return-to-work response, for younger as well as older workers, and based on objective rather than subjective self-reporting of disability status. Our results suggest a strong positive incentive effect from higher wages, and that lump-sum benefit payouts that are not reduced if earnings increased generally do not have adverse incentives on the return to work and hours decision, except for an income effect over the longer life cycle of younger men. We also discuss the policy implications of our estimates.

Suggested Citation

Krashinsky, Harry A. and Campolieti, Michele (Mike) and Gunderson, Morley, Labor Supply Decisions of Disabled Male Workers (October 17, 2011). Journal of Labor Research, Vol. 28, No. 3, 2011, Available at SSRN: https://ssrn.com/abstract=1945453

Harry A. Krashinsky (Contact Author)

University of Toronto - Centre For Industrial Relations ( email )

121 St. George Street
Toronto M5S 2E8
Canada
(416) 978-5696 (Phone)

Michele (Mike) Campolieti

University of Toronto at Scarborough - Division of Management ( email )

1265 Military Trial
Scarborough, Ontario M1C 1A4
Canada

Morley Gunderson

University of Toronto - Department of Economics ( email )

150 St. George Street
Toronto, Ontario M5S 3G7
Canada
416-978-5398 (Phone)
416-978-5696 (Fax)

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