How Do Alternative Work Arrangements Affect Income Risk After Workplace Injury?

Nicholas Broten, Michael Dworsky, David Powell

NBER Working Paper No. 25989
Issued in June 2019
NBER Program(s):Labor Studies

Alternative work arrangements, including temporary and contract work, have become more widespread. There is interest in understanding the effects of these types of arrangements on employment and earnings risk for workers and the potential for existing social insurance programs to address this risk. We study employment and earnings risk in the context of workplace injuries among temporary and contract workers. We link administrative workers' compensation claims to earnings records to measure the employment and earnings risk posed by workplace injuries, comparing labor market outcomes after injury between temporary and contract workers and direct-hire workers injured doing the same job. We use a triple-difference identification strategy to isolate the effect of alternative work arrangements. We find that temporary workers have significantly lower probabilities of employment post-injury relative to similar direct-hire workers; temporary workers also have more severe earnings losses, which persist for at least three years after injury. This difference in income risk cannot be explained by differences in employment dynamics between temporary and direct-hire workers. We find evidence that the additional earnings losses suffered by temporary workers are offset by workers' compensation benefits, suggesting that the program provides insurance for the incremental risk faced by temporary workers.

You may purchase this paper on-line in .pdf format from ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.


Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w25989

NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us