Economic consequences of workplace injuries and illnesses: Lost earnings and benefit adequacy

Background This is the first study based on individual data to estimate ear nings lost from virtually all reported workplace injuries and illnesses in a state. Methods We estimated lost earnings from workplace injuries and illnesses oc curring in Wisconsin in 1989-90, using workers' compensation data and 6 yea rs of unemployment insurance wage data. We used regression techniques to es timate losses relative to a comparison group. Results The average present value of losses projected 10 years past the obs erved period is over $8,000 per injury. Women lose a greater proportion of their preinjury earnings than do men. Replacement of after-tax projected lo sses averages 64% for men and 50% for women. Conclusions Overall, workers with compensated injuries and illnesses experi enced discounted pre-tax losses projected to total over $530,000,000 (1994 dollars), with about 60% of after-tax losses replaced by workers' compensat ion. Generally, groups losing over eight weeks' work received workers' comp ensation benefits covering less than 40% of their losses. Am. J. Ind. Med. 36:487-503, 1999. (C) 1999 Wiley-Liss, Inc.