Workers' Compensation Recipiency in Union and Nonunion Workplaces

This study estimates union effects on workers' compensation indemnity claims during 1977-92, based on individual panel data constructed from the March Current Population Survey. Union members were substantially more likely to receive workers' compensation benefits than were similar nonunion workers, and they were more sensitive to variation in benefit levels and waiting periods. The authors suggest that differences in union, as compared to nonunion, workplaces arise because workers are provided with information from their union representatives, supervisors are more likely to inform injured workers about workers’ compensation filing procedures and less likely to discourage workers from filing claims, workers are less likely to fear being penalized for filing claims, and management has less discretion and ability to monitor workers and penalize them for questionable claims. The findings suggest that communication of relevant information to workers is an important determinant of workers' compensation recipiency. Barry Hirsch and David Macpherson are Professors of Economics and Research Associates, Pepper Institute on Aging and Public Policy, and Michael DuMond is a Ph.D. candidate in economics, all at Florida State University in Tallahassee. They appreciate helpful comments from Richard Butler, James Chelius, David Durbin, and Gary Fournier. Financial support was received from the Florida Department of Labor and Employment Security, Division of Workers' Compensation. Copies of computer programs used to generate results presented in the paper are available from the authors at the Department of Economics, Florida State University, Tallahassee, Florida 32306-2045.