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  4. May 2022
  5. Explaining Heterogeneity in Use of Non-wage Benefits: The Role of Worker and Firm Characteristics in Disability Accommodations

Explaining Heterogeneity in Use of Non-wage Benefits: The Role of Worker and Firm Characteristics in Disability Accommodations

  • Naoki Aizawa
  • Corina Mommaerts
  • Stephanie Rennane
AEA Papers and Proceedings
vol. 112, May 2022
(pp. 376-80)
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Abstract

Non-wage benefits are an important component of employment arrangements, but are not available to or used by all workers. Do differences in firm, worker, or match-specific characteristics drive benefit take-up? We provide new evidence on heterogeneity in use of non-wage benefits, focusing on disability accommodations. Using administrative data in Oregon, we document significant dispersion in accommodation rates across worker and firm characteristics. We decompose the variance in accommodation use, finding that firm characteristics explain substantially more than worker or injury characteristics (29 percent vs. 4 percent). This finding highlights the firm's role in use of non-wage benefits like disability accommodations.

Citation

Aizawa, Naoki, Corina Mommaerts, and Stephanie Rennane. 2022. "Explaining Heterogeneity in Use of Non-wage Benefits: The Role of Worker and Firm Characteristics in Disability Accommodations." AEA Papers and Proceedings, 112: 376-80. DOI: 10.1257/pandp.20221124

Additional Materials

JEL Classification

  • D22 Firm Behavior: Empirical Analysis
  • J14 Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
  • J28 Safety; Job Satisfaction; Related Public Policy
  • J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
  • J81 Labor Standards: Working Conditions