Factors Affecting Return to Work after Injury: A study for the Victorian WorkCover Authority

Speedy and efficacious return to work of recovered or recovering workers is a central objective of workers compensation authorities. However, many of the factors that facilitate return to work are not well understood. This paper aims to shed light on these issues by utilizing a sample from the administrative records of workers compensation claimants in Victoria for the financial years 1993/94 to 1997/98. We separately model payments made as pensions (weekly payments) and payments made as lump sums to meet medical purposes (non-weekly claims). Two part model specifications are employed to model both the incidence of a payment and the duration or amount of that payment. The results show that claimant characteristics, characteristics of the accident, industry, employer and insurer characteristics influence the incidence, duration and cost of workers compensation claims.