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

Naoki Aizawa, Corina Mommaerts and Stephanie Rennane

AEA Papers and Proceedings, 2022, vol. 112, 376-80

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.

JEL-codes: D22 J14 J28 J32 J81 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1257/pandp.20221124

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