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Workers' Compensation and Injury Duration: Evidence from a Natural Experiment

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Author Info
Meyer, Bruce D
Viscusi, W Kip
Durbin, David L

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Abstract

This paper examines the effect of workers' compensation on time out of work. It introduces a 'natural experiment' approach of comparing individuals injured before and after increases in the maximum weekly benefit amount. The increases examined in Kentucky and Michigan raised the benefit amount for high-earnings individuals by approximately 50 percent, while low-earnings individuals, who were unaffected by the benefit maximum, did not experience a change in their incentives. Time out of work increased for those eligible for the higher benefits and remained unchanged for those whose benefits were constant. The estimated duration elasticities are clustered around 0.3-0.4. Copyright 1995 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 85 (1995)
Issue (Month): 3 (June)
Pages: 322-40
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Handle: RePEc:aea:aecrev:v:85:y:1995:i:3:p:322-40

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Finis Welch, 1977. "What have we learned from empirical studies of unemployment insurance?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(4), pages 451-461, July.
  2. Alan B. Krueger, 1990. "Incentive Effects of Workers' Compensation Insurance," NBER Working Papers 3089, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Butler, Richard J & Worrall, John D, 1985. "Work Injury Compensation and the Duration of Nonwork Spells," Economic Journal, Royal Economic Society, vol. 95(379), pages 714-24, September. [Downloadable!] (restricted)
  4. Alan Krueger, 1990. "Worker's Compensation Insurance and the Duration of Workplace Injuries," Working Papers 641, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  5. Ronald G. Ehrenberg, 1989. "Workers' Compensation, Wages, and the Risk of Injury," NBER Working Papers 1538, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. repec:fth:prinin:261 is not listed on IDEAS
  7. Butler, Richard J & Worrall, John D, 1983. "Workers' Compensation: Benefit and Injury Claims Rates in the Seventies," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 580-89, November. [Downloadable!] (restricted)
  8. Bruce D. Meyer, 1989. "A Quasi-Experimental Approach to the Effects of Unemployment Insurance," NBER Working Papers 3159, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Boone, J. & Ours, J.C. van, 2002. "Cyclical fluctuations in workplace accidents," Discussion Paper 98, Tilburg University, Center for Economic Research. [Downloadable!]
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  2. Skogman Thoursie, Peter, 2002. "Reporting Sick: Are Sporting Events Contagious?," Research Papers in Economics 2002:4, Stockholm University, Department of Economics. [Downloadable!]
  3. Denis Bolduc & Bernard Fortin & France Labrecque & Paul Lanoie, 1997. "Incentive Effects of Public Insurance Programs on the Occurence and the Composition of Workplace Injuries," CIRANO Working Papers 97s-24, CIRANO. [Downloadable!]
  4. Susan Athey & Guido Imbens, 2003. "Identification and Inference in Nonlinear Difference-in-Differences Models," Levine's Bibliography 506439000000000079, UCLA Department of Economics. [Downloadable!]
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  5. Gary Chamberlain & Guido W. Imbens, 1996. "Nonparametric Applications of Bayesian Inference," NBER Technical Working Papers 0200, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  7. Guido Imbens & Charles F. Manski, 2003. "Confidence intervals for partially identified parameters," CeMMAP working papers CWP09/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  8. Ruth Miquel, 2003. "Identification of Effects of Dynamic Treatments with a Difference-in-Differences Approach," University of St. Gallen Department of Economics working paper series 2003 2003-06, Department of Economics, University of St. Gallen. [Downloadable!]
  9. Bernard Fortin & Paul Lanoie, 1998. "Effects of Workers' Compensation: A Survey," CIRANO Working Papers 98s-04, CIRANO. [Downloadable!]
    Other versions:
  10. Lynn A. Karoly & Paul S. Davies, 2004. "The Impact of the 1996 SSI Childhood Disability Reforms: Evidence from Matched SIPP-SSA Data," Working Papers wp079, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
  11. Cockx, Bart & Ridder, Geert, 1996. "Social employment of welfare recipients in Belgium: an evaluation," Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Discussion Paper 1996018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
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  12. Kelly Edmiston, 2005. "Worker's compensation and state employment growth," Community Affairs Research Working Paper 2005-04, Federal Reserve Bank of Kansas City. [Downloadable!]
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  13. David Card & Brian P. McCall, 2006. "When to Start a Fight and When to Fight Back: Liability Disputes in the Workers' Compensation System," NBER Working Papers 11918, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Sarah Crichton & Steven Stillman & Dean Hyslop, 2005. "Returning to Work from Injury: Longitudinal Evidence on Employment and Earnings," IZA Discussion Papers 1857, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Rocio Sánchez-Mangas & Virginia Sánchez-Marcos, . "Reconciling female labor participation and motherhood: the effect of benefits for working mothers," Studies on the Spanish Economy 195, FEDEA. [Downloadable!]
  16. Bruce D. Meyer, 1994. "Natural and Quasi- Experiments in Economics," NBER Technical Working Papers 0170, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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