State Dependence, Accommodations, and the Post-injury Employment of Disabled Workers

Abstract

This paper examines the post-injury employment patterns of disabled workers from Ontario, Canada by estimating a dynamic probit model with unobserved effects. The estimates indicate that there is some state dependence in the conditional probability of leaving employment for health reasons and that an employer accommodation can reduce the conditional probability of leaving employment for health reasons by 33%. Moreover, a supplementary cross-sectional analysis confirms that accommodations can reduce the probability of leaving employment.