Social Insurance and Truncated Benefits: Measuring the Impacts of Workers' Compensation
Table 8
(a) Regression estimates for machinists in 1990♦
Model
(1)
(2)
(3)
(4)
WC benefit
OLS with individual-specific temporary weekly benefit
0.0038*** (38.25)
OLS with individual-specific temporary weekly benefit ratio (i.e., benefit/weekly wage)
−1.9728*** (−31.82)
2SLS with individual-specific temporary weekly benefit ratio (i.e., benefit/weekly wage)
−0.4544*** (−3.34)
2SLS with individual-specific temporary weekly benefit
0.0015*** (7.05)
NO HS
−0.0244 (−1.25)
−0.0623*** (−2.95)
−0.0760*** (−3.07)
−0.0580*** (−2.56)
Some college
0.0505*** (3.47)
0.0718*** (4.57)
0.1004*** (5.41)
0.0857*** (5.03)
College
−0.0488 (−1.16)
−0.0324 (−0.71)
−0.0486 (−0.91)
−0.0517 (−1.06)
Overtime
−0.1620*** (−13.03)
−0.1531*** (−11.37)
−0.1019*** (−6.27)
−0.1166*** (−7.88)
Experience
0.0123*** (6.01)
0.0220*** (10.12)
0.0298*** (11.41)
0.0242*** (9.53)
Experience2
−0.0002*** (−3.89)
−0.0003*** (−6.90)
−0.0004*** (−7.81)
−0.0003*** (−6.65)
Farm
0.0111 (0.23)
0.0085 (0.16)
0.0337 (0.54)
0.0293 (0.52)
City
0.0298** (2.14)
0.0694*** (4.64)
0.0953*** (5.40)
0.0739*** (4.50)
Black
0.0279 (0.83)
−0.0917*** (−2.54)
−0.0696 (−1.64)
−0.0268 (−0.69)
Indian
−0.0048 (−0.06)
0.0002 (0.00)
−0.0150 (−0.14)
−0.0137 (−0.14)
North east
−0.1841*** (−8.84)
0.1744*** (7.64)
0.0287 (0.99)
−0.0822*** (−3.24)
North central
−0.2242*** (−11.11)
0.2226*** (10.11)
0.0525* (1.82)
−0.0882*** (−3.44)
South
−0.1223*** (−5.90)
−0.0501** (−2.21)
−0.1211*** (−4.48)
−0.1344*** (−5.62)
Constant
1.3132*** (41.74)
3.0077*** (60.29)
2.0595*** (22.26)
1.5918*** (37.48)
Adjusted-
0.59
0.51
0.33
0.45
♦Dependent variable is natural logarithm of real hourly wage. Omitted dummy variables include WEST and HS.
(b) Regression estimates for machinists in 1990♦
Model
(5)
(6)
(7)
(8)
WC benefit
OLS with state-specific temporary weekly benefit index
0.0000 (−0.09)
Modified Heckman for “middle-” wage workers based upon state-specific temporary weekly benefit ratio (i.e., benefit/weekly wage)
−0.8508** (−2.14)
Modified Heckman for “high-” wage workers based upon state-specific temporary weekly benefit
0.0018*** (10.55)
OLS with state-specific comprehensive annualized benefit index°
1.7481** (1.99)
NO HS
−0.0803*** (−3.00)
−0.0727** (−2.28)
−0.0027 (−0.09)
−1502.7170*** (−6.65)
Some college
0.1089*** (5.44)
0.0970*** (4.17)
0.0812*** (3.63)
1475.9650*** (5.23)
College
−0.0535 (−0.69)
−0.1805*** (−2.51)
−0.0181 (−0.30)
192.7681 (0.26)
Overtime
−0.0866*** (−5.08)
−0.1535*** (−6.74)
−0.1564*** (−7.03)
2794.0870*** (15.56)
Experience
0.0321*** (12.25)
0.0194*** (5.48)
0.0161*** (3.77)
580.9895*** (21.57)
Experience2
−0.0005*** (−8.38)
−0.0002*** (−3.41)
−0.0003*** (−3.45)
−9.0561*** (−16.92)
Farm
0.0413 (0.57)
0.0436 (0.62)
0.0826 (0.93)
94.8393 (0.16)
City
0.1031*** (5.35)
0.0864*** (3.97)
0.0129 (0.54)
1736.6110*** (7.39)
Black
−0.0632 (−1.39)
−0.1220** (−2.23)
0.0404 (0.83)
−2245.9350*** (−3.84)
Indian
−0.0199 (−0.25)
0.0205 (0.17)
−0.0038 (−0.03)
−598.5831 (−0.46)
North east
−0.0140 (−0.45)
0.2409*** (5.09)
−0.0408 (−1.07)
—
North central
0.0026 (0.08)
0.2518*** (5.58)
−0.0590 (−1.49)
—
South
−0.1428*** (−4.70)
0.0246 (0.60)
−0.1489*** (−5.28)
—
Constant
1.7864*** (14.70)
2.1251*** (7.94)
1.9162*** (21.26)
9197.6540*** (18.37)
Lambda
0.077 (1.18)
−0.057 (−1.04)
♦Dependent variable is natural logarithm of real hourly wage, except for (8) where the dependent variable is real annual wage. Omitted dummy variables include WEST and HS.
°Annualized comprehensive index model (8) includes state-fixed effects in lieu of all regional dummies and year dummies, and thus the coefficients are not directly comparable.
(c) First-stage probit estimates from modified Heckman for machinists in 1990♦
Model
(6)
(7)
Modified Heckman for “middle-” wage workers based upon state-specific temporary weekly benefit ratio (i.e., benefit/weekly wage)
Modified Heckman for “high-” wage workers based upon state-specific temporary weekly benefit
Single
0.348*** (3.85)
−0.359*** (−3.95)
Family size
−0.037 (−1.15)
0.037 (1.15)
% union
−0.007* (−1.89)
0.187*** (4.89)
% mining
−0.188*** (−4.92)
0.008** (2.23)
Earnings
5*** (−2.60)
5*** (2.55)
Accidents
−0.007 (−0.69)
0.007 (0.62)
No HS
0.242** (2.27)
−0.247** (−2.31)
Some college
−0.066 (−0.84)
0.079 (0.99)
College
−0.069 (−0.31)
0.077 (0.34)
Overtime
−0.326*** (−4.88)
0.323*** (4.80)
Experience
−0.046*** (−3.88)
0.049*** (4.03)
Experience2
0.001** (2.19)
−0.001** (−2.27)
Farm
0.197 (0.71)
−0.172 (−0.62)
City
−0.178** (−2.32)
0.197*** (2.55)
Black
0.026 (0.15)
−0.026 (−0.15)
Indian
0.523 (1.10)
−0.516 (−1.09)
North east
0.897*** (6.83)
−0.920*** (−6.98)
North central
0.743*** (5.87)
−0.772*** (−6.05)
South
0.345*** (2.59)
−0.321*** (−2.40)
Constant
2.431*** (2.96)
−2.465*** (−2.99)
♦Dependent variable is REGIME, the zero-one indicator that equals one if worker is “high-” wage and zero otherwise. Omitted dummy variables include WEST and HS.
