The Economics of Voluntary Disclosure in SAT Scores

wage-loss replacement rate increases with the duration of disability, with PPD claimants doing the best. Of course, it should be pointed out that, under the assumption that the PPD claimants have lifelong (or permanent) impairments, their earnings losses will continue far beyond the five-year mark. This in turn will serve to lower the replacement rate since nearly all workers’ compensation payments have been completed within five years while the losses continue, presumably far beyond. But the real surprise is the continuing nature of earnings losses after five years.