Do High Wage Earners Have Longer TTD Duration? – New NCCI Study
Do high wage earners stay out of work longer? A recent study by NCCI points to adding age to the study variable mix. That makes sense to add in an age factor. We all know that older workers usually earn more than their younger counterparts. I like NCCI’s thinking here.
You can find the study here. If you are running short on time, a two-minute video was included for clarity. I decided to add it at the bottom of this article. It is worth two minutes of your time.
From what I have seen in files over the years:
- Older workers take longer to heal
- Older workers have a higher earning capacity than younger workers
The question is though, do higher wage workers stay out of work longer? I am not sure.
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From NCCI –
Typically, older workers earn more than younger ones on average. Also, an older injured worker may take longer to heal. The question of whether or how wages impact duration is thus an interesting one.
Our investigation reveals that answering the question, “Do wages influence temporary disability duration?” requires a closer look.
Key Findings: The overall impact of wage on temporary disability (TD) duration is not a simple relationship. It is a result of intricate interactions with multiple factors, notably the injured worker’s age.
- The average duration for high wage earners is the longest and that of low wage earners is the shortest.
- The difference in duration among age groups is smallest for high wage earners.
- The proportion of wage earners in the low and high wage earner groups varies by age.
- The influence of wage on duration depends on claimant’s age. Keeping other factors constant,
- For workers aged 29 years and younger, low wage earners have a meaningfully shorter duration.
- For workers in the age group 30 to 34, and those in the 64 and older age group, wage does not meaningfully influence duration.
- For workers in age groups between 35 to 64, high wage earners have a meaningfully shorter duration.
The Influence of Wage on Temporary Disability Duration—A Modeled View
Please note that you will be taken to the article where the video will open in some browsers.
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Bottom Line
One cannot assume that the higher the TTD payment, the longer someone wants to stay out of work. Many factors go into TTD period length. Looking at the three bullet points above, many variables have to be taken into account.
The high wage earner study is worth your time. Check out the video and follow the link to the study. It is data wonkish.
