The Propensity of Permanently Disabled Workers to Hire Lawyers

Abstract

Although a major objective of workers' compensation insurance has been to reduce the financial and legal uncertainties that work-related injuries can occasion for employers and employees, a significant proportion of claimants with permanent injuries contest the benefit award. The authors of this study use a sample of 1,060 California workers with permanent injuries to identify the factors that influence the propensity to hire an attorney. The results suggest that educational level, union membership, the seriousness of the injury, and the availability to the injured worker of additional sources of income are all positively related to the propensity to hire an attorney. The findings also suggest that injured workers satisfied with the employer's and insurer's handling of the claim are less likely than other workers to hire an attorney.